Morning Silver Market Report for 11/3/2010

Compiled 11/03/10 6:00 AM ( CT ) Statistics: London Gold Fix $1358.50 +$.50 LME Copper Stocks 366,050 tons -875 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Unlike the gold market, the silver market remains within close proximity to its recent highs into the potentially critical FOMC meeting statement and results. While the currency market action this morning is supportive of silver and physical commodities, the silver market is being presented with some slightly negative price divergence in copper and platinum. Some traders have suggested that silver prices near their recent highs are in need of something aggressive from the US Fed today, while others suggest that currency action will be the thing to watch in the wake of the Fed statement release this afternoon. At least in the early going today the outside markets are supportive of the bull case in silver but scheduled US data is likely to have some impact on silver prices this morning, as many think the Fed has become data dependant. Comex Silver Stocks were 110.718 million ounces down 14,286 ounces. Stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were mixed, U.S. stock indices are close to unchanged levels during the early Wednesday trade. The Dollar is mixed against the major currencies during overnight trading, although posting a moderate loss versus the Pound. Yesterday's mid-term US congressional elections had the Republicans gain control of the House and make gains in the Senate. The Federal Reserve is widely expected to introduce a new US quantitative easing program at the conclusion of the FOMC meeting today. The World Bank raised their estimate for Chinese growth this year from +9.5% to +10.0%. South Korea fired warning shots at their border with North Korea for the second time in a week. A private survey of UK service business during October rose to 53.2, higher than forecast. The Federal Reserve's Open Market Committee will announce their monetary policy decision at 1:15 PM. Major US economic indicators this morning include September Factory Orders along with a private survey of US non-manufacturing ISM readings at 9:00 AM, and several private surveys of employment and mortgage applications are also due to be released during the morning trade.

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The daily commentaries provide a recap of each product's traded price activity, an analysis of the factors that influenced price activity, a recap of any reports released that day, and a look ahead at the next day's schedule. CME Group provides market commentaries for corn, wheat, soybeans, gold, silver, FX, equity indexes and regional market updates.

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

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

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