Compiled 02/15/11 6:00 AM (CT) Statistics: London Gold Fix $1372.25 +$16.00 LME Copper Stocks 402,425 tons +650 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Clearly the UK and Chinese inflation readings gave the bull camp an added assist this morning, particularly because some BOE officials seemed to suggest that inflation were capable of tempering ahead. In other words, BOE officials have seemingly acknowledged there is an internal debate over the actual level of inflation and that certain factions are suggesting that inflation isn't a concern right now, and that has given hope to some inflation players in the gold market. Suggestions from the BOE calling for work on commodity supply side constraints, as way to control inflation, seems to suggest that some central bankers actually understand the real roots of the commodity bull market. With the April gold contract hitting the highest level since January 19th, it would appear that the January and February recovery move has been extended and that might be adding a measure of technically related buying interest to gold this morning. The big question for the bull camp will be the gold markets reaction to scheduled US data, as expectations for most of the data this morning is for some more evidence of growth and it will be interesting to see if gold can rise off that news, or if the gold trade will fret over the threat of rising US interest rates. With the market also seeing the start of the debate over the President's budget plan today, there could be some impact on gold prices from the political realm. The biggest impact from Budget debate could be its impact on the US Dollar, as the lack of spending restraint might undermine the Dollar. Comex Gold Stocks were 11.173 million ounces down 127,026 ounces. Gold stocks have declined 11 of the last 20 days. 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 were generally higher this morning. Early indications are for the US stock market to open near unchanged levels this morning. The Dollar is moderately lower against most of the major currencies during overnight trading, although posting a small gain against the Yen. The Bank of Japan kept Japanese interest rates on hold at their monetary policy meeting today, but lifted their outlook for the Japanese economy. The Governor of the Bank of England said that higher UK inflation levels were due to tax hikes and stronger commodity prices. The Chinese CPI during January was up 4.9% year-on-year, lower than expectations. Euro zone GDP during the fourth quarter was up 0.3%, lower than expectations. The Euro zone Trade deficit during December was 500 million Euros, worse than expected. German GDP during the fourth quarter was up 0.4%, lower than forecasts. A private survey of German economic sentiment during February was 15.7, lower than expectations. The UK CPI during January was up 4.0% year-on-year, in line with forecasts. Major US economic numbers to be released this morning include January Retail Sales, January Import & Export Prices, and the NY Fed's Empire State Manufacturing survey for February at 7:30 AM, and December Business Inventories as well as a private survey of US Housing Prices during February at 9:00 AM. In addition, Fed regional President Pianalto will give a speech during the session.