Morning Silver Market Report


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Compiled 04/27/11 6:00 AM ( CT ) Statistics: London Gold Fix $1508.00 +$3.00 LME Copper Stocks 463,500 tons +3,400 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While silver prices are showing positive action in the early US Wednesday trade action, volatility has remained very high and the trade noted a slight decline in silver derivative holdings yesterday afternoon. It is also possible that silver prices were somewhat undermined by suggestions that historic highs in silver have increased recycling efforts in India and more than likely in other regions as well. Like gold, silver is thought to be garnering some support from expectations of dovish dialogue from the Fed later today. However, a bullish story for silver in the Wall Street Journal could be seen as evidence of at least a temporarily overdone speculative condition in silver, especially since the influx of investment and trading interest has also sparked record trading volumes in the CME silver contract. The silver market might not see much impact from the US scheduled data this morning, as anticipation for the statements from the Fed will probably dominate sentiment for a large portion of today's trade. Comex Silver Stocks were 101.757 million ounces down 4,965 ounces. Silver stocks have declined 15 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were mixed during overnight trading, early indications are for US equity markets to open today's session with moderate gains. The Dollar is weaker against most of the major currencies during overnight trading, although posting a gain versus the Yen. A credit ratings agency has downgraded Japan's sovereign debt, due to the ongoing impact of last month's Sendai earthquake on their economy. Newspaper reports indicate that Portugal may receive additional time to match budget deficit targets set by the EU and the IMF for this year and next year. Japanese Retail Sales during March was down 8.5% year-on-year, weaker than expected. UK GDP during the first quarter was up 1.8%, in line with forecasts. Euro zone Industrial Production during February was up 0.9%, in line with projections. The Federal Reserve's Open Market Committee will announce their decision on US monetary policy at the new time of 11:30 AM, with a press conference by the Fed Chairman to follow at the "old" time of 1:15 PM. Major US economic numbers to be released this morning include March Durable Goods and the Chicago Fed Midwest Manufacturing Index at 7:30 AM, and a private survey of mortgage applications released before the opening. The second leg of the Treasury's monthly refunding, the 5-year note auction, will have results announced at 12:00 PM.

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

This article appears in: Investing Commodities
Referenced Stocks: CT

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