Morning Silver Market Report


Compiled 04/28/11 6:00 AM ( CT ) Statistics: London Gold Fix $1531.00 +$23.00 LME Copper Stocks 463,650 tons +150 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While the silver market hasn't managed a fresh new high like the gold market overnight, the market has forged a very impressive range up move from the prior close. Somewhat surprising is that silver has managed the sharp pulse up move in the wake of news of a decline in silver derivative holdings. However, the metals markets are seemingly fixated on the idea that the US Fed is set to allow inflationary pressures to build as they are currently resolved to leave QE2 in place until its planned conclusion at the end of June. It is also likely that overt weakness in the US Dollar is contributing to the upward track in silver prices this morning. It is somewhat surprising that silver prices in the early trade this morning have been as much as $2.74 an ounce higher and yet the silver market remains well below the all time high. The US scheduled data flow today is largely expected to support silver prices as that news will probably fan the talk of inflation but more than likely the data won't be strong enough to alter the pattern of weakness in the Dollar. Comex Silver Stocks were 101.652 million ounces down 104,493 ounces and the trade is watching closely for any sign that exchange stocks are poised to fall below 100 million ounces, as that could foster talk of physical tightness. Comex Silver Stocks are at the lowest levels since 08/10/2006. Silver stocks have declined 16 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 higher this morning. Early indications are for US equity markets to open today's session with slight gains. The Dollar is weaker against most of the major currencies during overnight trading. The Bank of Japan kept Japanese rates unchanged at today's meeting, but lowered growth forecasts due in main part to the effects of last month's earthquake. China's population rose to 1.34 billion people during 2010, nearly half of which now live in urban areas. Japanese CPI during March was down 0.1% year-on-year, a smaller decline than expectations. Japanese Industrial Production during March was down 15.3%, weaker than projections and a record one-month decline. The German Unemployment during April was 7.1%, unchanged from last month but higher than expectations. Major US economic numbers to be released this morning include Weekly Jobless Claims and 1st quarter GDP at 7:30 AM, and a private survey of Pending Home Sales at 9:00. The final leg of the Treasury's monthly refunding, the 7-year note auction, will have results announced at 12:00 PM. In addition, Fed Regional President Lockhart and Fed Governor Duke will speak during the session.

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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