Morning Silver Market Report

Compiled 10/10/11 6:00 AM (CT) Statistics: London Gold Fix $1,664.00 +$12.00 LME Copper Stocks 462,625 tons -4,755 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, silver found some support overnight from an apparent sigh of relief regarding Europe's economic crisis in the wake of the Sarkozy/Merkel pledge to support Europe's banks. Silver, like most commodities, is stronger this morning off of a slight improvement in the economic outlooks for Europe and the US in the wake of some the better than expected US jobs data on Friday and some improvement in German trade balance and French industrial production numbers overnight. There is even talk that the US has averted a "double dip" recession. The Columbus Day holiday may keep trade volume down today, but silver is starting the week off on a strong note. Comex Silver Stocks were 105.935 million ounces down 597,617. The Commitments of Traders futures and options report released last Friday showed that speculators were net sellers for week prior to October 4th. The report showed non-commercial traders were net long 17,211 contracts, a decrease of 2,683 contracts. Non-commercial and nonreportable traders combined held a net long position of 25,339 contracts, down 4,909. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe were moderately higher this morning. Early indications are that US equity markets will open with sizable gains today. The US Dollar is weaker against most of the major currencies. German Chancellor Merkel and French President Sarkozy pledged to recapitalize Europe's banks and announced that they would have a plan in place within three weeks. The Chinese Vice Foreign Minister stated that passage of the US Currency Bill might have adverse impact on US-Chinese ties. The German Trade surplus during August was 13.8 billion Euros, higher than market expectations. French Industrial Production during August was up 0.5%, also higher than market forecasts. There will be no major US economic numbers to be released this morning.