Compiled 08/12/11 6:00 AM (CT) Statistics: London Gold Fix $1,755.00 -$31.00 LME Copper Stocks 461,775 tons -1,375 tons Shanghai Deliverable socks were 120,819 tons +2,619 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market continues to waffle on the charts, with the bear camp seemingly drawing support from a pattern of lower highs. The bull camp probably wants to draft some support from political comments in the US overnight, which seemed to signal more political infighting ahead on the deficit debate. Some bears think that silver is destined to see pressure off the slowing economy and therefore the reaction to the retail sales figures today could be an important measure of the real focus of the silver trade. While silver has clearly lagged behind gold prices this week, the lack of definitive upside action this week in silver prices could mean less technical selling pressure in silver today in the event that gold prices come under renewed pressure. Comex Silver Stocks were 104.843 million ounces up 661,466 ounces. Stocks have increased 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during the overnight session, stock indices in Europe are generally stronger this morning. Early indications are that US equity markets will open with modest gains later on today. The US Dollar is weaker against most major currencies this morning, although posting a substantial gain versus the Swiss Franc. France, Italy, Spain and Belgium have each instituted short selling bans on financial stocks since yesterday's close. The People's Bank of China said that they will use interest rates and the Chinese Yuan to guide that nation's monetary policy. French GDP during the second quarter was unchanged, lower than market forecasts. French CPI during July was up 2.1% year-on-year, smaller than expectations. Euro zone Industrial Production during July was down 0.7%, weaker than projections. Major US economic numbers to be released this morning include July Retail Sales at 7:30 AM, a private survey of US Consumer Sentiment during August just before 9:00 AM, and June Business Inventories at 9:00 AM. In addition, Fed Regional President Dudley will give a speech during the session.
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