Compiled 08/17/11 6:00 AM (CT) Statistics: London Gold Fix $1,792.00 +$13.00 LME Copper Stocks 464,625 tons -650 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has forged a quasi upside breakout this morning and in the process the September silver contract reached the highest level since August 8th. Apparently silver and platinum prices have managed to take a large measure of direction from gold prices and in turn the fear of slowing physical demand has been discounted. Therefore action in the currency markets, equity markets and debt markets are likely to have a noted ongoing impact on silver prices. However, traders don't seem to be able to fully tamp down macro economic slowing fears and that could at times hold silver back from a direct and tight link with gold prices. It does seem as if silver and platinum prices have seen some spillover bargain hunting buying recently from would-be gold buyers and that might leave gold as the key leading indicator of the precious metals complex. Silver might be able to garner some support from Chinese concerns of their US investments, as the Vice President's visit to China has rekindled currency manipulation charges again. Comex Silver Stocks were pegged at 105.268 million ounces which is a decline of 1,025,431 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 overnight trading, stock indices in Europe are generally weaker this morning. Early indications are that US equity markets will open near unchanged levels later on today. The US Dollar is weaker against most of the major currencies this morning, although posting a moderate gain versus the Pound. The Swiss National Bank announced fresh liquidity measures to weaken their currency but did not initiate a "peg" versus the Euro. China announced plans to allow foreign investors to use the Yuan to buy Chinese securities. UK Unemployment during July was 7.9%, higher than market expectations. Euro zone CPI during July was 2.5% year-on-year, in-line with forecasts. Major US economic numbers to be released this morning include the July Producer Price Index at 7:30 AM, and a private survey of mortgage applications released before the opening. In addition, Fed Regional President Fisher will give a speech during the session.
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