Morning Silver Market Report March Silver found initial pressure and was unable to claw its way into positive ground during Wednesdays US trading session and this morning the market remains within close proximity to yesterdays lows. Silver should have been partially cheered by a noted recovery in energy, copper and equity prices yesterday, but instead the market was pulled down under the negative spell of gold and platinum selling. While the Dollar is weaker to start today, US data and Fed dialogue is probably capable of resurrecting that negative outside market influence today in silver. In fact, a slightly better than expected US PPI data point boosted the Dollar and sparked a fresh wave of US Fed tapering fears yesterday and the March silver contract reacted with a high to low slide on the charts of 20 cents an ounce! Some traders think that silver was technically overextended going into this weeks highs, especially with the March contract at Tuesdays high sitting roughly $1.36 an ounce above last weeks lows. Traders must also look back to the last COT positioning report from January 7th, which pegged the net spec long in silver to be 26,256 contracts, as March silver at this weeks high, was temporarily trading another 89 cents an ounce above the level where the COT report was compiled. In short, higher physical production from two sources yesterday, the potential for adverse Dollar action and fears of US tapering leaves silvers near-term direction heading downward. At this point, silver might not see a direct lift from South African mining strike threats, unless those strikes become industry wide and platinum and gold prices recover sharply. Comex Silver Stocks were 174.778 million ounces down 97,398. Stocks have increased 13 of the last 20 days.
Posted on: Thu, 16 Jan 2014 13:37:39 +0000