Compiled 08/15/11 6:00 AM (CT) Statistics: London Gold Fix $1,738.00 -$17.00 LME Copper Stocks 460,600 tons -1,175 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market would seem to start the new trading week out in the upper third of the last week's trading range and to some traders that suggests that silver is garnering some benefit from higher equity market action. Silver and gold apparently saw some declines overnight, as Asian traders detected less overall anxiety. While silver did see some declines in silver derivative holdings at the end of last week, silver and gold both appear to be in a "wait and see" mode on the twin debt problems from the US and Euro zone. In the near term, the silver market will continue to waffle between a physical commodity market and a flight to quality instrument. Comex Silver Stocks were 105.699 million ounces up 856,363 ounces. Stocks have increased 13 of the last 20 days. The Commitments of Traders Futures and Options report as of August 9th for Silver showed Non-Commercial traders were net long 25,804 contracts, a decrease of 6,773 contracts. The Commercial traders were net short 44,556 contracts, a decrease of 9,560 contracts. The Non-reportable traders were net long 18,753 contracts, a decrease of 2,785 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 44,557 contracts. This represents a decrease of 9,558 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were generally stronger during the overnight session, early indications are that US equity markets will open with moderate gains later on today. The US Dollar is weaker against most major currencies this morning, although posting a substantial gain versus the Swiss Franc. A German government spokesman said that the creation of "Euro" bonds will not be on the agenda at this week's meeting between German Chancellor Merkel and French President Sarkozy. Japanese GDP during the second quarter was down 0.3%, a smaller decline than market forecasts. Major US economic numbers to be released this morning include the NY Fed's Empire State Manufacturing survey at 7:30 AM, the Treasury Dept's International Capital Flows report at 8:00 AM, and a private survey of the US Housing Market during August at 9:00 AM. In addition, Fed Regional President Lockhart will give a speech during the session.
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