Morning Silver Market Report

Compiled 06/10/11 6:00 AM ( CT ) Statistics: London Gold Fix $1,541.00 +$6.00 LME Copper Stocks 477,925 tons +75 tons Shanghai Deliverable stocks were 83,275 tons -2,888 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) At least in the initial action today, the September silver contract seems to be starting out on a positive footing. In fact, September silver prices managed to reach the highest level since June 1st this morning and since that upward bias was seen in the face of minor gains in the Dollar and a general lack of key developments overnight, one gets the sense that Thursday's action is still providing some positive carry over. With silver somewhat outperforming the gold market yesterday, in the face of a positive shift in macro economic sentiment, some traders are suggesting that silver is attempting to shift its focus toward growth/inflation and away from a safe haven tilt. Unfortunately for the bull camp, the outlook for the economy has mostly been suspect and weak recently and with little in the way of scheduled data flow from the US today, the silver bulls might be left without a fresh catalyst. Unlike gold, silver saw some bearish analyst dialogue overnight, but that news doesn't look to have a major impact on silver prices in the early going today. Comex Silver Stocks were unchanged at 101.015 million ounces. Silver stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were mixed during the overnight session, early indications are that US equity markets would open close to unchanged levels this morning. The US Dollar is slightly stronger against most of the major currencies this morning, although posting a minor loss versus the Yen. The German Parliament has voted to support an additional aid package for Greece, but the head of the European Central Bank said that the ECB will not directly participate in any bailout. South Korea raised their benchmark interest rates for the third time this year. The Chinese Trade surplus during May was 13.1 billion Dollars, lower than market expectations. German CPI during May was up 2.3% year-on-year, in line with forecasts. UK Industrial Production during April was down 1.7%, much weaker than expectations. UK PPI during May was up 5.3% year-on-year, in line with forecasts. The only major US economic number to be released this morning will be May Import & Export prices at 7:30 AM. In addition, Fed Regional President Dudley will give a speech 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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