Markets

Morning Silver Market Report

Compiled 05/18/11 6:00 AM ( CT ) Statistics: London Gold Fix $1,491.25 -$4.25 LME Copper Stocks 469,050 tons +225 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) July silver action overnight was positive as prices managed to rise above the prior session's high and were seemingly poised to hold a large portion of that initial probe higher into the Wednesday US trade. Silver might have garnered some support from news of an inflow into silver derivative instruments yesterday afternoon and silver might also be catching some lift from strength in a number of physical commodity markets overnight. Like gold, silver saw some evidence of physical buying in Asia and with a slide in the US Dollar, there are a number of themes that have shifted into a more positive posture. To a degree the slowing track of the US economy has coincided with the weakness in silver prices over the last several weeks and therefore the silver market could be poised to parse the FOMC meeting minutes release later today rather closely. Given the weakness in US scheduled data this week, a portion of the silver market is fearful of slowing and therefore action in the US equity markets might be seen as a proxy for US data in the trade today. Comex Silver Stocks were 101.187 million ounces up 280,145 ounces. Silver stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were generally stronger during overnight trading, early indications are for US equity markets to open today's session with moderate gains. The Dollar is slightly weaker against most of the major currencies during overnight trading, although posting a gain versus the Pound. The Prime Minister of Japan stated that the Japanese will allow some nuclear reactors to resume operations provided they meet emergency safety measures. The Chinese central bank said that their foreign currency purchases during April were down almost 25% from the previous month's levels. UK Unemployment during March was 7.7%, lower than market expectations. There are no major US economic numbers to be released this morning. However, the Federal Reserve's Open Market Committee will release the minutes of their April meeting at 1:00 PM. In addition, Fed Regional President Bullard will give a speech this evening.

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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