Compiled 05/13/08 6:00 AM (CT)

Statistics: London Gold Fix $877.00 -$5.50 LME Copper stocks 121,775 tons +125 tons

SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market is holding up rather well in the face of a series of bearish outside market reactions this morning. Certainly silver is set to be undermined as a result of the weaker gold action and certainly the silver market is at least partially undermined by the rise in the Dollar, but it is also possible that news of a potential long term increase in silver production, from a Mexican silver miner is adding to the weak initial bias today. However, silver has recently found some support from platinum prices and that seems to have reduced the negative influence on silver prices off the weaker action in the gold market. In another partially undermining overnight news item, Coeur D'Alene Mines announced that they would maintain their initial annual silver production targeting, but fortunately for the bull camp, the silver market just isn't locked onto the physical supply flow fundamentals. However, it should be noted that silver held in trust at a noted silver ETF continued to hold near record levels and that could suggest that investors have remained committed to silver, despite the last 2 1/2 months decline in flat prices.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) With the US economic report slate today becoming more active and the US Fed overnight hinting at ongoing inflation concerns in the US, it is not surprising to see the US Dollar making initial gains. In fact, with the trade generally expecting a slight rise in US retail sales figures this morning and the currency markets in general failing to embrace a true leadership currency in recent trading sessions, it is possible that the US data this morning could result in a rather reactionary move in the Greenback today. On the other hand, the markets also saw inflationary news from the UK, Spain and the US Fed overnight and yet that news didn't seem to lend much in the way of support to gold and silver prices. On the other hand, weakness in oil prices off International Energy Agency calls for more OPEC oil production did seem to add to the negative tilt in the precious metals markets in the early going today.

Technical Analysis:
Note: Compiled during previous session 05/12/2008 at 3:21 PM CBOT SILVER (JUL) 05/13/2008: Stochastics are at mid-range but trending higher, which should reinforce a move higher if resistance levels are taken out. The intermediate trend could be turning up with the close back above the 18-day moving average. With the close over the 1st swing resistance number, the market is in a moderately positive position.