Morning Silver Market Report

Compiled 08/03/11 6:00 AM ( CT ) Statistics: London Gold Fix $1,667.50 +$43.50 LME Copper Stocks 465,850 tons +225 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Thesilver markethas managed a fresh new high for the move but as of this writing the September silver contract had not managed to rise above the July 27th high. Like gold, concern for the US and Euro zone situations and a lack of alternative investments has left a steady inflow of capital into the precious metals markets. In fact, global equities are largely in a downdraft, US Treasuries are expensively priced and offer very low yields and Euro zone debt is once again being viewed with a high degree of suspicion and that leaves silver and gold as a clear port in fairly broad based storm. A slight reversal in the dollar overnight and the prospect of more US slowing evidence later today, that would seem to leave the bull camp with the same fundamental setup as was seen yesterday. However, some silver bulls might point to increased concern from the Chinese, toward US debt levels overnight, as a fresh positive for silver and gold prices. Comex Silver Stocks were 105.004 million ounces up 506,700 ounces. Silver stocks have increased 13 of the last 20 days. Comex Silver stocks are at their highest levels in the past 10 sessions. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were generally weaker during the overnight session, early indications are that US equity markets will open with moderate gains later on this morning. The US Dollar is weaker against most of the major currencies this morning, although posting a strong gain versus the Swiss Franc. The Swiss National Bank unexpectedly cut that nation's benchmark interest rates this morning. The Italian Finance Minister met with the head of Euro zone finance ministers for emergency talks. Euro zone Retail Sales during June were up 0.9%, higher than expectations. A private survey of Euro zone service industries was 51.6, slightly higher than forecasts. Major US economic numbers to be released this morning include private surveys of US employment and US job cuts released before the opening, and June Factory Orders as well as a private survey of US non-manufacturing industries will also be released at 9:00 AM.

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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