Compiled 01/19/11 6:00 AM (CT) Statistics: London Gold Fix $1373.75 +$5.00 LME Copper Stocks 381,750 tons +3,825 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With the Dollar falling to the lowest level since November 22nd and the Euro reaching up to the highest level since November 23rd, it is possible that part of the strength in gold prices this morning is the result of currency market action. With platinum managing a fresh upside breakout and in the process reaching a 3 decade high, it is possible that some of the gains in gold were the result of spillover buying from other precious metals markets. While concerns toward the Euro zone debt situation seem to have declined slightly, the market is seeing ongoing inflation concerns, with sharp gains in wheat prices this week prompting renewed food price inflation fears. In fact, unrest in Northern Africa seemed to have a negative impact on regional equity markets overnight and that could become a flight to quality issue for the gold market if that situation deteriorates. In addition to sharply rising wheat prices, the markets are also seeing the US Treasury yield curve throwing off inflationary vibes. In yet another inflationary signal, the spread between Inflation adjusted Treasuries and regular Treasuries is showing evidence of growing inflationary expectations and that is probably something that is providing support to gold prices. In the overnight action, Indian gold buying interest was somewhat subdued perhaps because recent flat price gains have made prices a little less attractive. Some might see the Wall Street Journal article on gold as a bearish development overnight, but the bull camp in gold might suggest that type of coverage highlights the existence of a lingering bearish contingent in the marketplace. Comex Gold Stocks were 11.721 million ounces up 66,979 ounces. Comex Gold Stocks have reached a new record high level. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were generally higher during overnight trading, stock indices in Europe are mixed this morning. Early indications are for the US stock market to open slightly lower this morning. The Dollar is weaker against most of the major currencies during overnight trading, although posting a small gain versus the Pound. Chinese President Hu Jintao has arrived in the US for a State Visit. The chief economist for the Bank of Japan stated that the Japanese economy will begin to rebound by the middle of this year. Greece has denied reports that they are in negotiations to restructure their debt. UK Unemployment during November was 7.9%, in line with forecasts. US economic numbers to be released this morning include the December Housing Starts at 7:30 AM, and several private surveys of store sales and mortgage applications released during the session.