Silver Bullion Market Report 04/09/2012
The silver Bullion market is actually starting out weaker but it initially managed a fresh new high for the move in the wake of strong action in the gold market. However, the end of an Indian jewelers strike is of limited benefit to silver and like gold, silver is also seeing some minor lift off talk that the US numbers might force the US Fed to reconsider its recent migration to an on hold stance. As suggested in the gold coverage, the precious metals markets might take a lot of direction from the Chicago Fed manufacturing data, as a soft reading from that report might add to the “hope” of a return to an easing posture, especially in the event that the US economy demonstrates renewed slowing action directly ahead. At the end of last week, US Comex Silver Bullion Stocks were pegged at 139.520 million ounces for another surprising single day gain of 1,331,062 ounces. Comex Silver Bullion Stocks are now at the highest levels since 08/06/2008. The Commitments of Traders Futures and Options report as of April 3rd for Silver showed Non-Commercial traders were net long 23,353 contracts, an increase of 1,437 contracts. The Commercial traders were net short 35,594 contracts, an increase of 1,775 contracts. The Non-reportable traders were net long 12,241 contracts, an increase of 338 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 35,594 contracts. This represents an increase of 1,775 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were mostly weaker overnight, with the markets in that region put off balance by the US payroll result from last Friday and also because of troubling Chinese inflation readings that were released overnight. The European markets were still closed to be an extended holiday. US stocks were sharply lower in the early going today, with the disappointment from the US Non farm payroll results still resonating in the marketplace. From the US scheduled report front today, the market will see a Chicago Fed Midwest manufacturing report and that will be followed by a Fed Chairman Speech, which might attract extra attention, as the payroll readings from Friday might have some analysts rekindling hopes of QE3 ahead.
