Morning Silver Market Report 8/31

 
on August 31 2012 10:45 AM

Compiled 08/31/12 6:00 AM (CT)

Statistics: London Gold Fix $1,657.75 +$0.75 LME Copper Stocks 229,900 tons -275 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Silver has forged a modest recovery effort to start today. While cheered by the prospect of a Bundesbank leadership change, physical and industrial commodities were probably undermined slightly by the latest round of dismal EU unemployment figures. At least in the short term, the silver market will be locked onto the Bernanke speech. Since December silver is off roughly $1.05 an ounce from this week's highs, the silver market might be able to rise sharply if Bernanke provides a sliver of easing hope. In the event that Bernanke doesn't tip the bar in favor of easing soon, silver and other physical commodities would be distinctly impacted.

While the market will see US Factory Orders and Michigan consumer sentiment figures this morning, the trade will probably reserve most of its reaction to the Jackson Hole Fed speech. At least in the early going, most outside market forces are favoring the bull camp in silver.

Comex Silver Stocks were 140.395 million ounces up 189,600 ounces. Stocks have declined in 11 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese equity markets were lower again overnight off of bad earnings and fears towards the upcoming PMI report that is scheduled for release over the weekend. Some equity market measures in China have now seen negative action for four consecutive months!

European stocks started higher this morning, off of more calls for ECB easing and perhaps off hopes of supportive dialogue from the US Fed later today. US stocks have also started out higher in anticipation of the Bernanke speech today.

Out from the US today, is Factory Orders and the Consumer Sentiment Survey from University of Michigan but the focus of the US trade is likely to be locked onto Jackson Hole.

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