Morning Silver Market Report

Compiled 05/10/11 6:00 AM ( CT ) Statistics: London Gold Fix $1,517.25 +$12.25 LME Copper Stocks 468,325 tons -275 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The July silver contract managed another higher high for the move overnight and in the process silver prices were close to regaining the highs posted back on May 5th. Some traders continue to suggest that the gains seen over the last several sessions are simply the result of an overdone washout, while others think that inflation and debt troubles are bringing capital back toward silver. As in the gold market, the silver bulls might need definitively positive leadership from the grain markets to effectively rekindle talk of inflation, as last week's washout probably wounded a number of bulls. In looking forward to the action today, the silver market might see an impact from the US Wholesale trade figures, as that news will be the only scheduled report from the US that indirectly touches on the actual pace of the economy. The silver market could also see some reaction to Import/Export price readings and the US debt auction at mid session. At least to start, the silver trade might be set to track the action in grain prices, especially if the grain trade begins to factor in serious planting delays and tightness in grain supplies later this year. Comex Silver Stocks were 102.095 million ounces up 80,262. Silver stocks have declined 14 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 early are generally stronger this morning. 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 gains versus the Yen and Swiss. Officials from Greece denied news reports that nation was expecting a debt emergency package. The Chinese Trade surplus during April was $11.42 billion, much larger than expected. French Industrial Output during March was down 0.9%, weaker than expected. The first leg of the Treasury's monthly refunding, the 3-year note auction, will have results announced at 12:00 PM. Major US economic numbers to be released this morning are April Import and Export Prices at 7:30 AM, March Wholesale Inventories at 9:00 AM, and private surveys of store sales will also be released during the session. In addition, Fed Governor Duke and Fed Regional President Lacker 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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