Compiled 02/01/11 6:00 AM (CT) Statistics: London Gold Fix $1337.50 +$4.00 LME Copper Stocks 393,925 tons -100 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While the gold market is benefiting from a weaker Dollar overnight, it also seems as if favorable global equity market action is providing the gold market with a bit of a lift. It is also possible that gold is seeing some lift from suggestions that more central banks will move to increase their holdings of gold this year in the face of the sharp ongoing rise in the US money supply. However, gold and silver are probably a bit undermined in the wake of news of large redemptions in precious metals derivative holdings in the month of January. Apparently gold is garnering some lift off the persistent strength in Brent crude oil market as that market continues to touch the critical psychological price level of 100 a barrel. Some players are suggesting that gold wants to see a favorable resolution to the political turmoil in Egypt and that would suggest that gold continues to behave like a physical commodity market and not a classic flight to quality instrument. However, a million-man march in Egypt looks to leave the markets on edge through the trading session today. The US scheduled data today initially looks to be supportive, as the general expectation is for positive early readings and that might provide gold support from a classic physical commodity market angle. Comex Gold Stocks were 11.496 million ounces down 94,423 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 generally mixed during overnight trading, stock indices in Europe are generally stronger this morning. Early indications are for the US stock market to open with moderate gains this morning. The Dollar is weaker against most of the major currencies during overnight trading. The Egyptian Army has pledged not to confront protestors who are demanding an end to the Mubarak government at what is projected to be a large rally in Cairo today. The Irish Parliament will be dissolved today, with an election expected to be called for late in February. The head of the IMF said that high unemployment and global imbalances may lead to increasing amounts of trade protectionism. Euro zone Unemployment during December was 10.0%, in-line with forecasts. German Unemployment during January was 7.4%, lower than expectations. A private survey of UK housing prices during January was down 0.1%, a smaller decline than projected. Major US economic numbers to be released this morning include a private survey of US Purchasing Managers during January as well as December Construction Spending at 9:00 AM, and several private surveys of store sales and auto sales will also be released during the session.