Morning Silver Market Report
Compiled 08/08/12 6:00 AM (CT) Statistics: London Gold Fix $1,607.00 -$6.00 LME Copper Stocks 245,600 tons +550 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market has started off on a weaker footing with a host of negative outside market forces and equity market action around the globe. Apparently optimism toward the Euro zone has drained from the market. It also seems as if the hope of fresh central bank easing has become prevalent in the press. With adverse currency market action and weakness in a host of industrial/physical commodity prices, it isn't surprising to see silver prices correcting some of their recent $1.00 per ounce rally. Silver might also have been undermined by brokerage firm comments pointing to slack investor demand for silver. In looking forward, the market this morning probably won't take much direction from the US productivity readings. However, moderate losses in September silver prices this morning fell back below even numbers on the charts. This has some players concerned about some technical follow-through selling in the event that US equities remain under pressure throughout the trading session. Comex Silver Stocks were 137.863 million ounces down 2,298,651 ounces. Silver stocks have declined in 15 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese shares were higher overnight, with the Shanghai market managing more definitive gains than Hong Kong. European shares were weaker overnight as the anticipation of a European fix was waning. The trade was also looking ahead to a German debt auction for a reading on the level of anxiety toward all things Euro. More evidence of weakness in the European economy was seen overnight with the Bank of France predicting that France will slip back into recession in the 3rd quarter. Results from the German debt auction will probably be seen as a proxy for confidence, or the lack of, in the Euro zone. The markets might also have been undermined by disappointing macro-economic predictions from a key BOE official. The US economic report slate is somewhat thin today with a 2nd quarter productivity growth reading and a 10 Year US Treasury auction at mid-session.