Compiled 01/10/12 6:00 AM (
CT
) Statistics: London Gold Fix $1,627.00 +$9.00 LME Copper Stocks
365,375 tons -1,525 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT)
With a noted range up effort early today, March silver has
managed to reach the highest price level since December 21st. The
trade seems to be divided on the actual source of the sharply
higher action, with some traders pointing to favorable currency
market action and others suggesting that the gains are primarily
because of the return of a risk on mentality. Others think that
gold and silver are drafting positively off more gains in energy
prices, while others think that silver is gaining ground because
of hope that the US Fed and the PBOC are generally poised to
provide assistance to the global economy. Silver is probably
drawing some support from news that India might be set to allow
more banks to import silver, but allowing more import avenues
isn't necessarily a sign of increased Indian silver demand down
the road. In the end, there does appear to be a risk on vibe in
place and a stronger Euro to start, probably gives the bull camp
in silver added confidence. While silver might be garnering some
support from higher energy prices, it remains to be seen if oil
prices are rising because of geopolitical uncertainty, or simply
because of generally upbeat global macro economic psychology.
Comex Silver Stocks were 121.888 million ounces down 414,993
ounces. Silver stocks have increased in 15 of the last 20 days.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Equity markets in Asia
were stronger overnight and that action generally seemed to
extend around the globe. In fact, European and US equity markets
also look to be poised to start out on a noted positive track.
The US Dollar has started out weaker against the euro, but it was
showing some minor gains versus the Aussie Dollar. Overnight the
markets saw the Chinese trade surplus expand, but many also think
that the Chinese trade numbers will usher in further assistance
from the PBOC. In looking ahead to the US trade action, the
markets will only see a series of private weekly chain store
sales readings and US Wholesale trade results and therefore the
scheduled data front isn't expected to be that important to the
metals trade today. There will be three Fed speeches around mid
session today and that dialogue could impact the metals if there
is more noted dovish talk from the Fed. In addition to the Fed
speeches there will also be a 3 year US note auction and periodic
impacts are to be expected from the start of the US corporate
earnings cycle.