Morning Silver Bullion Market Report-3/26/2012
Like gold, May silver bullion costs managed an initial new high for the move and in the midst they temporarily reached up to the top level since March 20th. Also like gold, silver seemed to gather some lift from the expedient German Ifo figures released this morning. Some traders are suggesting that may silver wants to shut above a down trend channel resistance line, to effectively throw off the downward pattern in silver costs that has been in place since the Feb 29th highs. Silver looks to take almost all of its direction from the direction of stocks and the ebb and flow of risk on and risk off psychology. An issue that might put a lid over silver prices early this week is a developing pattern of rising silver exchange stocks, particularly with Comex Silver Stocks at the end of last week, reaching up to 135.8 million ounces for a single day gain of 1,204,957 ounces. Comex Silver Stocks are now at the loftiest levels since 10 / 03 / 2008. Silver stocks have gone up Fifteen of the last 20 days. The Commitments of Traders Futures and Options report as of March 20 th for Silver showed Non-Commercial traders were net long 25,209 contracts, a cut back of 1,329 contracts. The Commercial traders were net short 36,964 contracts, a decrease of 4,426 contracts. The Non-reportable traders were net long 11,755 contracts, a cut back of 3,098 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 36,964 contracts. This represents a reduction of 4,427 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS : ( 600 AM CT ) Asian stocks were mixed to usually lower overnight but Shanghai, Hang Seng and the Nikkei all managed to post gains. EU stocks were mixed overnite, with the DAX and FTSE offsetting weakness in the CAC and IBEX. Clearly favorable German Ifo readings this A. M. provided a lift to portions of the European trade this morning. US stocks were only showing minimally positive early action, as the world wasn’t completely ready to put last week’s risk off vibe completely behind. The US economic report slate this A. M. is rather active and there’ll also be two US Fed speeches in the early Monday morning US trade hours.
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