Statistics: London Gold Fix $1,755.25 -$8.50 LME Copper Stocks 220,075 tons -450 tons
SILVER MARKET FUNDAMENTALS: (6:00 AM CT) December silver has forged a 180 degree reversal overnight and in the process the silver market was able to regain all of the steep losses forged in the prior session. Therefore, December silver might be poised to catch a wave of technically related buying in the early action today, especially in the wake of the fresh and massive assistance provided by the PBOC overnight. It is also possible that silver will see some lift this morning from news of a positive inflow into a silver derivative instrument yesterday, as that might hint at bargain hunting buying on the slide in silver prices earlier this week. However, as in gold and other physical commodities, evidence of ongoing debt turmoil and budget cuts in Europe should continue to keep concern toward the Euro zone in a front and center position. Silver might be garnering some lift this morning from favorable press coverage overnight from the WSJ, but silver and over physical commodity markets should still find it difficult to get around the pattern of slowing in Europe. In fact, the Italian debt auction early this morning is likely to be a major influence on silver prices for the rest of the Thursday US trade. It is also likely that scheduled economic data from the US will also impact silver prices but with expectations for Durable goods report calling for a noted contraction, that news could rekindle the risk off vibe that seemed to have settled into the markets early this week. Certainly moves by China to cushion their economy have provided a measure of fresh buying interest this morning but the real test will be global equity market action in the aftermath of the US data releases. Comex Silver Stocks were 140.862 million ounces down 38,484 ounces. Silver stocks have declined 11 of the last 20 days.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese equity markets were stronger overnight, as the PBOC stepped up and provided a serious injection of funds ahead of an upcoming Chinese holiday. While the Chinese move provided a cushion for European equity markets, recent protests in Spain and Greece combined with another rise in the German September jobless figures to generally leave sentiment toward the Euro zone on the rocks. While the US stock markets were showing positive initial action today, the expectation of slowing remain in place and the markets might be poised to take a lot of direction today from US claims and from an advanced US durable good result that could register a significant contraction. In short, the Chinese stimulus move overnight might be overshadowed by fresh slumping US data.
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