Morning Silver Market Report Like gold, the silver market ranged down again overnight and given the still relatively high open interest condition, that should leave technical momentum in favor of the bear camp. Silver drafted only minimal support from talk of rising Indian silver jewelry export flow, as that might allow for more Indian silver imports but those finished goods will ultimately be competition for other silver exporters. Another bearish story hitting silver over the last 24 hours was seen following news of a 3.6% rise in Mexican February silver production from year ago levels. Silver might also be seeing some pressure from ongoing weakness in energy, copper and many physical commodity markets. While the Dollars slide is probably cushioning the slide in silver prices, the bull camp probably needs to have a much improved global macroeconomic outlook to halt or reverse the erosion in silver prices. As suggested a number of times this week, US data has been inadequate for a solid bottom to form and spillover weakness from gold and copper prices looks to leave the bias pointing downward in silver today. Comex Silver Stocks were 174.483 million ounces down 70,419 ounces. Stocks have declined 16 of the last 20 days. As the July Silver contract nears the ultra-important multi-month consolidation low zone around $19.10-$19.00 we suspect that the net spec long is being pulled down and that another leg down might effectively put the non-commercial and non-reportable net long down below the 10,000 contract level. In order to come in on the long side of silver for a position play, we need to see July Silver spike down to $18.92 and then reject that probe. However, a more bullish near-term tilt could present itself if July Silver manages a closetoday back above $19.51.
Posted on: Thu, 01 May 2014 12:59:27 +0000