Mon 28 Jan 2013 06:05:33 CT
Compiled 01/28/13 6:00 AM (CT)
London Gold Fix $1,656.75, -$13.50 LME Copper Stocks 341,000 tons -1,900 tons
SILVER MARKET FUNDAMENTALS: (6:00 AM CT)
The March silver contract has forged a lower low overnight and seems to have started the new trading week out on a negative track. With weakness in gold, choppy action in global equity markets and adverse currency market action, the bull camp in silver is having trouble dredging up supportive story lines. Silver saw some bearish private price forecasts overnight and that combined with weakness in platinum prices seems to have emboldened the bear camp out of the gate this morning. As in gold, silver seems to need a revival of a flight to quality focus, but weekend hints of forced US spending cuts and perhaps even a US government shut down, have initially failed to support silver and gold prices. Comex Silver Stocks were 152.268 million ounces up 1,317,300 ounces and that the might get the attention of some silver bears. Comex Silver Stocks are now at the highest levels since 08/15/1997. Stocks have increased 13 of the last 20 days. The Commitments of Traders Futures and Options report as of January 22nd for Silver showed Non-Commercial traders were net long 33,950 contracts, an increase of 2,868 contracts. The Commercial traders were net short 51,028 contracts, an increase of 5,620 contracts. The Non-reportable traders were net long 17,079 contracts, an increase of 2,753 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 51,029 contracts. This represents an increase of 5,621 contracts in the net long position held by these traders.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT)
Chinese equity markets were higher overnight as comments from Chinese officials on the need to protect bank profits sparked a rally in mainland shares and that in turn served to lift the market in Hong Kong. European stock indices were off slightly in the face of talk that the markets might have become overdone relative to ongoing sluggish economic conditions. The FTSE was also off recent 4 1/2 years highs on profit taking and a lack of fresh bullishness toward the UK economy. US stocks were mixed in the early action, perhaps off ideas that forced US government spending cuts still can't be ruled out. The US economic report slate is somewhat active today, with a series of regional Fed manufacturing surveys, a Durable Goods report and an NRA Pending home sales release due out early on. While US scheduled data recently has been upbeat, data at the end of last week cast some doubt on the pace of the US recovery and that should make this morning's 2nd and 3rd tier economic data a little more important.
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