Morning Silver Market Report

Compiled 08/05/11 6:00 AM ( CT ) Statistics: London Gold Fix $1,665.00 +$.75 LME Copper Stocks 465,125 tons -200 tons Shanghai Deliverable stocks were 118,200 tons +1,133 SILVER MARKET FUNDAMENTALS: (6:00 AM CT) As in gold, the trend in silver is widely expected to continue pointing to the upside, but given the sharp gains and the propensity for volatility, traders should brace for a very active end to the trading week. With the trading range yesterday in September silver a rather robust $3.82 an ounce, many traders are suggesting that silver reached a critical junction. With gold and silver prices seemingly being bulled down by slowing fears and broad based physical commodity market liquidation at times yesterday, it seemed as if silver temporarily lost its flight to quality standing. Therefore a large portion of the trade today, will be keen to measure the resolve of the flight to quality bulls, in the wake of the US payroll report this morning. In other words, seeing silver weaken in the face of slack payroll readings, could signal a crack in the bull's foundation. Some traders also think that a decent number from the US today, could dampen flight to quality sentiment for silver and therefore opinions are diverse and conflicted into the key payroll report release. Comex Silver Stocks were 105.297 million ounces down 459,420 ounces. Silver stocks have increased 14 of the last 20 days. 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 losses later on today. The US Dollar is weaker against most of the major currencies this morning. Early indications are that the Bank of Japan sold 4.5 trillion Yen during yesterday's intervention, a record amount. Germany, France and Spain are scheduled to have talks concerning the financial markets later on this morning. The French Trade deficit during June was 5.6 billion Euros, a smaller deficit than expected. A private survey of UK Housing Prices was up 0.3%, slightly higher than expectations. The UK PPI during June was up 5.9% year-on-year, in line with forecasts. Major US economic numbers to be released this morning, include July Non-Farm Payrolls, July Private Payrolls and July Unemployment at 7:30 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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