OUTSIDE MARKET DEVELOPMENTS: While the US Dollar is showing some minor gains this morning, the Dollar remains within striking distance of its recent lows and that probably gives some gold and silver bulls hope in the early action today. However, with a slightly positive global equity market bias overnight and the global economic attitude this week mostly up beat, that seems to be lending ongoing support to both gold and silver prices. With a series of corporate earnings reports scheduled for release again this morning, the markets might have an offset to an anticipated rise in US initial unemployment claims figures early today. Later in the trading session, the markets will also be presented with existing home sales readings that are also expected to show a minor improvement. While the US government will release details of upcoming debt supply flow, the markets might not give that information much credence today. In general, the tone of the day could be set again by the direction in equities, which in turn might be dictated by the flow of quarterly earnings.
SILVER MARKET FUNDAMENTALS: The silver market did manage another new high for the move overnight on the charts and that has allowed silver to show early gains in the face of weakness in gold and copper prices. It would appear as if the silver market is outperforming the gold market this week and that silver is benefiting from favorable economic expectations and residual Dollar weakness. However, it is also possible that favorable news coverage, of a new silver trust launch, is fanning the talk of rising investment demand for silver. As in the gold market, silver did see some news of increased silver production from a minor silver producer in the last 24 hours, but it also seems as if the silver trade is content to take a large measure of its guidance from the US equity markets and from the action in the US Dollar.
