Silver Bullion Market Report
The silver market underperformed relative to gold overnight, as silver failed to temporarily claw out a higher high on the charts like the gold market. Instead July silver spent most of the overnight trade below the prior close. Silver could have been supported by favorable Chinese PMI data and news of lower rates in Australia but instead silver seems to be content to track lower with the rest of the industrial commodity markets. Like gold, the silver market is expected to react to a series of US scheduled reports this morning but comments from Fed officials overnight failed to push hopes of Fed easing back to the front burner and therefore silver and the rest of the metals complex look to start the second trading session of the week slightly off balance. The bear camp probably feels like they have the ongoing advantage of the charts, as the silver market appears to have settled back into a pattern of lower highs this week. Comex Silver Stocks were 141.563 million ounces down 306,196 ounces. Silver stocks have increased in 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Some equity markets in Asia remained closed for holiday, but the Australia market was stronger off rate cut news while the Nikkei actually forged a fresh 2 1/2 month low close. European markets were propped up by a slightly higher start in the FTSE, but May Day celebrations might have reduced regional activity somewhat. US stock markets were showing a mixed early trade, with the focus shifting back to a rather active US scheduled report slate later today. The markets will also see a series of US Fed Speeches today and given the increased focus on the prospect of easing, the trade will be parsing Fed dialogue rather extensively today.
Gold Bullion Market Report
Apparently gold was lifted yesterday by supportive currency market action but others think gold was lifted by fresh ideas of US easing directly ahead. Therefore the gold market will be at least somewhat hopeful of a hint of fresh easing from today’s ECB meeting, especially with the recent turmoil in Spain rekindling renewed fears of a return to recession in the region. Perhaps further discussion of a “growth compact” will serve to lift gold and other physical commodity prices, but only if the trade sees distinct signs of forward progress on that issue. With the focus shifting toward easing prospects, it is possible that the US gold trade will need to see something soft from the US scheduled report slate today, to carve out another higher high on the charts. In addition to an ISM Manufacturing report, which is expected to make a slight decline, the trade will also be presented with a US Construction Spending reading, that is expected to forge a minimal gain. The gold market might also be impacted by US domestic auto sales figures, which will be released throughout the trading session. Comex Gold Stocks were 10.895 million ounces down 104,803 ounces. Comex Gold Stocks are now at the lowest levels since 05/26/2011. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Some equity markets in Asia remained closed for holiday, but the Australia market was stronger off rate cut news while the Nikkei actually forged a fresh 2 1/2 month low close. European markets were propped up by a slightly higher start in the FTSE, but May Day celebrations might have reduced regional activity somewhat. US stock markets were showing a mixed early trade, with the focus shifting back to a rather active US scheduled report slate later today. The markets will also see a series of US Fed Speeches today and given the increased focus on the prospect of easing, the trade will be parsing Fed dialogue rather extensively today.
