Fri 15 Feb 2013 06:10:36 CT
Compiled 02/15/13 6:00 AM (CT)
London Gold Fix $1,629.25, -$14.75 LME Copper Stocks 401,675 tons +2,550 tons
SILVER MARKET FUNDAMENTALS: (6:00 AM CT)
The silver market also remains linked to gold in this week's down draft on the charts. Slackening global growth views, declining inflationary expectations, adverse currency market action and persistent technical damage on the charts has given the bear camp a litany of bearish themes recently. Relatively speaking, silver has held up better than gold, as silver prices into the lows this morning, are only the lowest in 1 month, while gold prices have fallen to fresh six month lows. In another surprising twist, holdings of a key silver derivative instrument have managed to reach up to the highest level since January 22nd, while similar gold derivative holdings actually fell to 3 month lows! When one adds in recent talk of an early end to US easing, slackening Europe zone growth views and persistent weakness in the Euro, the bear camp has to feel like they have solid control. As in gold, silver needs to see some type of significant headline change to throw off the current pattern of weakness on the charts. Some technical players might even suggest that rising open interest in silver futures is bearish, as that action has come in the face of a pattern of weakening silver prices. Comex Silver Stocks were 160.594 million ounces up 1,031,082 ounces.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT)
Hong Kong shares were a little higher and managed to finish the week with a modest net gain. Indian shares were a touch weaker in the face of disappointing corporate earnings news, while European stocks generally remained off balance because of residual slowing fears. US stocks were showing some early weakness, as investors seem to be looking ahead to the next Washington battle over the budget. Despite a two day setback from the highs, US stocks have generally maintained a very tightly knit, up trending pattern on their charts for the last two months! In retrospect, the US economy has had a relatively thin US economic report flow this week, but the information that was released should have favored positive growth views, but yet there seems to have been a tempering of US and global growth views this week! The trade will see Industrial Production and capacity Utilization readings today as well as an Empire State report and therefore the week looks to end with a flurry of fresh data points.
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