OUTSIDE MARKET DEVELOPMENTS: With a slightly positive early bias in some global equity markets, the fear of slowing seen in the prior trading session seems to be tempered slightly. A slightly firmed early bias in energy prices and also in other physical commodities seems to be lending some minor support to gold prices in the early action today. However, there is some divergence within the metals complex this morning and that would seem to suggest a lack of a definitive theme among the metals markets. In the overnight action, the trade saw a slightly up beat Euro zone retail sales reading and the trade also noted a surprise jump in UK house prices and that would also seem to temper the renewed slowing fears that seemingly surfaced in the equity markets in the prior trading session. The US economic report slate today is somewhat active, with initial and ongoing claims data and also some US Treasury supply announcements. With the US monthly Non Farm payroll report due out on Friday morning, the ongoing claims data from the US this morning will probably take on an added measure of importance today.
SILVER MARKET FUNDAMENTALS: While the silver bulls might try to play up the recent influx of money into silver derivative instruments, it is clear that silver and a host of physical commodity prices have felt the pressure of slowing fears this week. The bear camp in silver is suggesting that the big range up and failure on the charts yesterday was a negative formation, while the bull camp in silver will suggest that the break of the last 24 hours has simply served to balance the overbought technicals in silver. With a bit of initial divergence between gold and silver prices early this morning, it would not seem like the metals complex is seeing a definitive fundamental focus in the early action. However, the ebb and flow of the US Dollar remains a key focus of the silver trade and it is possible that the US ongoing claims report could serve to undermine sentiment in silver this morning. However, a slightly positive bias in gold, in the early going today, has probably helped July silver return to the prior session’s lows. A number of traders seem to think that silver is destined to track its physical commodity market fundamentals over the coming two trading sessions.