Compiled 11/20/09 6:00 AM (CT)

Statistics: London Gold Fix $1,142.50 +$7.50 LME Copper stks 421,875 tons +1,325 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Similar to the gold market, silver managed to close higher on the session yesterday as the dollar set back from the highs, but the higher close is still considered a rare feat on a day when the dollar was higher and the stock market moderately lower. Buy and hold investment strategies appear to be a more significant offset to the decline in industrial demand, and the market remains in a solid uptrend. The idea that the market is overbought technically was seen as a bearish force overnight, and strong gains in the March US dollar index to the highest level since November 6th sparked a significant sell-off in the overnight session and a move under yesterday's lows for March silver. Weaker than expected economic news this week has the market on the defensive early today.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) The US dollar gained overnight in the wake of steep declines in equity prices yesterday. Risk aversion is being credited with the dollar gains, as funds are apparently booking profits and putting them into "safe" instruments like US government bonds, which clearly could be only a temporary maneuver. The German PPI fell 7.6% from year ago levels in October, which was only slightly greater than expected, and the Bank of Japan held rates steady at the record low 0.1%, neither of which is a surprise. The long term view hasn't really changed, as the record amount of debt the US government is undertaking is fanning inflationary concerns. But if the economy sputters, inflation threats will tend to abate. Dissatisfied with President's lack of progress on getting China to strengthen its currency against the Dollar, two US Senators, one Republican and one Democrat, are asking the Commerce Department to look into possible "currency manipulation" on the part of the Chinese government. If this issue gains momentum, it could raise concerns about protectionism and potential threats to the global economic recovery.