Morning Silver Market Report 9/21

 
on September 21 2012 10:15 AM

Statistics: London Gold Fix $1,773.75 +$13.75 LME Copper Stocks 219,475 tons -875 tonsSILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the silver market has regained its bullish footing over the last 24 hours and that has put December silver in a position to potentially challenge the recent highs. Apparently silver wasn't put off balance by news of lower Chinese silver imports for the month of August perhaps because of news of a slight positive inflow into silver derivative instruments yesterday afternoon. Clearly silver is emboldened this morning because the outside market environment is helpful today, and that is a 180 degree shift from the influence seen in the prior trading session.In the end, silver seems to be tracking physical commodity market factors and the bull camp probably wants and needs to see continued gains in US equities and a stronger Euro to forge a fresh upside breakout on the charts later today. A "risk-on" mentality would seem to be back in play this morning. This week's highs of $35.10 in December silver contract could be seen as a fairly significant junction in the US Friday trade action.Comex Silver Stocks were 140.874 million ounces up 459,249 ounces. Silver stocks have declined 11 of the last 20 days.OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese equity markets were stronger overnight, as investors there were seemingly cheered by a rebound in a host of physical commodity prices. European equities were also higher today seemingly boosted by solidarity talk from ECB officials and perhaps because of positive leadership from physical commodity stocks.US stocks were also showing signs of strength in the early going today, as prices managed to regain critical chart levels and now some segments of the metals market seem to be poised to return to the recent highs. The US economic report slate today is somewhat thin, with a 3rd or 4th tier mass layoff report due out and a speech from the Fed's Lockhart expected to impact the trade. 

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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

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