Markets

Morning Silver Market Report

Compiled 06/30/11 6:00 AM ( CT ) Statistics: London Gold Fix $1,508.00 +$2.00 LME Copper Stocks 465,250 tons -1,775 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has started out on a slightly positive footing, with the trade seemingly linked closely to the action in equities. In other words, silver remains a physical commodity market in need of a positive macro economic view. Certainly silver and other physical commodities are drafting positively off recent weakness in the Dollar, but the primary focus of silver, platinum and copper recently seems to be on the prospect of growth in the US economy. While the market doesn't seem to be acutely concerned about another Chinese tightening move, that fear could rise steadily into the close Friday, as the trade has grown accustomed to Chinese tightening into or over weekends. Like gold, silver might see some minor support off a positive 2nd half price forecast from a Russian miner, but that news is hardly a front burner development. To verify silver's focus as a physical commodity market in search of growth, one should monitor the silver markets reaction to the US claims data later this morning. Comex Silver Stocks were 98.937 million ounces down 70,082 ounces. Silver stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe are generally higher during the overnight session, early indications are that US equity markets would open with moderate gains later on this morning. The US Dollar is weaker against most of the major currencies this morning, although posting a gain versus the Pound. The Greek Parliament is scheduled to vote on the implementation of new austerity measures approved in yesterday's vote. Japanese Housing Starts during May were up 6.4%, higher than market expectations. Euro zone Inflation during June was up 2.7% year-on-year, in line with market forecasts. German Unemployment during June was 7.0%, in line with expectations. German Retail Sales during May were down 2.8%, lower than forecasts. Major US economic numbers to be released this morning include Weekly Jobless Claims at 7:30 AM, and a private survey of Chicago-area manufacturing at 8:45 AM. In addition, Fed Regional President Bullard 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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