Compiled 02/11/11 6:00 AM (CT) Statistics: London Gold Fix $1359.00 +$0.25 LME Copper Stocks 396,725 tons -225 tons Shanghai Deliverable stocks were 144,197 tons +9,899 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market has been mostly off balance and without definitive direction since the high that was forged early in the week. Surprisingly the gold market hasn't been able to embrace growing inflation fears from the hawkish comments flowing from many G20 officials. The gold market also seems to be put off balance by signs of increased tensions in Egypt and that would seem to suggest that gold isn't currently trading flight to quality issues. Certainly some strength in the US Dollar overnight has undermined gold prices as the Dollar this morning has reached its highest value since January 21st. With a number of press outlets pointing to a lack of interested physical buyers overnight, that would seem to mirror the pattern of lower highs that has formed on the charts this week. It is unclear whether or not gold will react to the US Trade Balance figures, but it did seem as if the improvement from the US claims data yesterday fostered some buying of gold and therefore traders should probably expect a measure of volatility through the scheduled US numbers this morning. Comex Gold Stocks were 11.338 million ounces down 62,376 ounces. Comex Gold stocks are at the lowest in the past 10 readings. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally weaker this morning. Early indications are for the US stock market to open with moderate losses again today. The Dollar is stronger against most of the major currencies during overnight trading. President Mubarak of Egypt has transferred some of his powers, but continues to remain in office. News reports indicate that the Chinese central bank has begun to raise reserve requirements on some medium and smaller size domestic banks. In a surprise move, the central bank of South Korea kept their benchmark interest rates unchanged at their monetary policy meeting. German CPI during January was down 0.4%, in-line with expectations. UK PPI during January was up 1.0%, higher than forecasts. Major US economic numbers released this morning include the December International Trade Balance at 7:30 AM, and a private survey of US Consumer Sentiment just before 9:00 AM.
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