Compiled 11/06/09 6:00 AM (CT)

Statistics: London Gold Fix $1,095.00 +$7.00 LME Copper stks 385,575 tons +5,775 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) While gold sits poised just below new highs this morning, December silver prices are still roughly 67 cents an ounce below the October highs. Certainly the silver market is being held back because of its industrial demand drag, but silver is also seeing significantly less speculative buying interest than gold. In other words, silver seems to need evidence of a growing economy, more so than the gold market. Some silver traders suggest that soaring gold prices are eventually going to result in a shift toward silver as a relatively cheaper alternative, but in the early action today, it would appear that gold gains are still outperforming silver gains. With copper prices showing a sideways consolidation pattern this week, in the face of strength in gold and equities, it certainly seems like industrial commodities are in need of something definitively up beat from the US payroll report today.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Apparently the US gold trade isn't tracking that tightly with the Indian gold market action overnight, as Indian gold prices showed minor weakness. Perhaps some traders were leveling positions ahead of the potentially violent US Non farm payroll report window or perhaps the proximity to the recent historic highs simply prompted some longs into a profit taking stance. While international equity prices overnight were largely mixed, the scheduled data flow overnight was mostly up beat and that probably favored the precious metals bulls. The stock markets this week, seem to have factored in a bit of a favorable US jobs reading and some traders are suggesting that a number of physical commodity markets like gold and silver, have also partially factored in readings that show a narrowing of the US job loss pace. The bear camp might suggest that historic highs in gold prices are suspect, in the face of an ongoing rise in the US unemployment rate and therefore the numbers this morning look to bring about some temporary fireworks.