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Morning Silver Market Report

Compiled 05/04/11 6:00 AM ( CT ) Statistics: London Gold Fix $1536.00 +5.00 LME Copper Stocks 463,925 tons +125 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market initially managed a fresh new low for the move overnight, but it was able to recoil from that probe. The silver market from the recent high was at times down as much as $9.38 cents an ounce from the April high in the overnight trade. Seeing such a significant correction has undermined a number of longs from a capital and margining perspective and with the added burden of declining geopolitical and inflation fears, the bear camp has some residual confidence. Not surprisingly, silver saw a decline in certain silver derivative holdings overnight. The silver market did see a partially supportive story in the Journal regarding the recent decline in real interest rates, but at this point, simply seeing lower holding costs and fewer outside market opportunities, might not be enough to shut off the recent pattern of selling in silver. It is also possible that a pattern of margin increases on silver, is at least temporarily providing the bear camp with an edge. However, the silver market is expected to garner some increased price action off the flow of US data today, but recently favorable US data seemed to weigh on silver prices and at times lift the Dollar. Comex Silver Stocks were 102.028 million ounces down 284,318 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 this morning. The Dollar is weaker against most of the major currencies during overnight trading, although posting a small gain versus the Yen. Portugal approved a deal with the EU and the IMF for a 78 billion Euro emergency debt bailout over the next three years. A Chinese central banker stated that inflation in his nation would moderate over the second half of this year. A private survey of German Service industries during April was 56.8, lower than expectations. A private survey of Euro zone Service Industries during April was 56.7, roughly in line with forecasts. Euro zone Retail Sales during March were down 1.0%, lower than projections. Major US economic numbers to be released this morning include a private survey of US non-Manufacturing industries at 9:00 AM, as well as private surveys of employment and mortgage applications released during the session. The Treasury will have their quarterly refunding announcement at 8:00 AM. In addition, Fed Regional Presidents Rosengren and Williams will give speeches during the session.

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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