Compiled 02/14/11 6:00 AM (CT) Statistics: London Gold Fix $1356.75 -$2.25 LME Copper Stocks 401,775 tons +5,050 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The April gold contract comes into the new trading week sitting in the lower quarter of the Friday trading range. The market will not be presented with regularly scheduled US economic data today but the trade will be looking ahead to some FOMC meeting minutes later this week. The situation in Egypt doesn't appear to be markedly changed over the weekend, with the military apparently giving some concessions to the protestors. Indian gold action was mixed to slightly weaker, leaving the US to set the tone for the new trading week. The gold market was seeing some detrimental currency market action early today but that outside market impact was at least partially offset by initial gains in silver and platinum prices. At this point, it is unclear how gold will react to the US Budget process directly ahead which seems to be facing a debate over the pace of the initial spending cuts. Comex Gold Stocks were 11.300 million ounces down 38,589 ounces. Comex Gold stocks are at the lowest in the past 10 readings. The Commitments of Traders Futures and Options report as of February 8th for Gold showed Non-Commercial traders were net long 191,281 contracts, an increase of 20,575 contracts. The Commercial traders were net short 235,975 contracts, an increase of 21,326 contracts. The Non-reportable traders were net long 44,695 contracts, an increase of 752 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 235,976 contracts. This represents an increase of 21,327 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally higher during overnight trading, early indications are for the US stock market to open near unchanged levels this morning. The Dollar is moderately higher against most of the major currencies during overnight trading, although losing ground against the Yen. Events in Egypt have calmed down since the resignation of President Mubarak late last week, but other nations in the region have begun to see protests. Euro zone Finance Ministers are meeting today to discuss the mechanics of their rescue fund. There are reports that a major German savings bank is having problems with putting together a restructuring plan. The Chinese Trade surplus during January was $6.5 billion, lower than expectations and due mainly to a 51% jump with imports over last year's levels. Japanese GDP during the fourth quarter of 2010 was down 0.3%, a smaller decline than expected. Euro zone Industrial Production during December was down 0.1%, a smaller decline than forecasts. There are no major US economic numbers to be released this morning. However, Fed regional President Dudley will give a speech during the session.
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