Morning Silver Market Report

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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.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities

Referenced Stocks: CT

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