Morning Silver Market Report 9/05

Compiled 09/05/12 6:00 AM (CT)

Statistics: London Gold Fix $1,689.50 -7.50 LME Copper Stocks 215,150 tons -3,750 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) December silver was moderately lower overnight following two strong days of sharply higher action. The market has been buoyed by anticipation of quantitative easing following the Fed Chairman's comments on Friday, and as the week progresses we expect it to focus increasingly on Friday's jobs report.

The recent COT report showed a buying trend by speculators, and this may underpin the market. However, generally lower commodity prices across the board and a somewhat higher dollar may keep gains in check today.

Comex Silver Stocks were 141.960 million ounces up 1,009,045.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets posted sizable losses during overnight trading, with the Nikkei down 1.09% and the Shanghai A Share Index down 0.29%. European stock markets are mixed this morning, with the UK FTSE-100 slightly lower while the German DAX is moderately higher. Euro-zone August PMI was revised down to 46.3 from the previous estimate of 46.6 and down from 46.50 in July.

US stock indices are generally lower while the Dollar is moderately higher this morning. Euro zone Retail Sales during July were down 0.2%, in line with market forecasts. US economic data this morning includes a reading on Productivity and Costs for the second quarter of 2012.

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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.