Compiled 02/16/11 6:00 AM (CT) Statistics: London Gold Fix $1374.50 +$2.25 LME Copper Stocks 405,800 tons +3,375 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) April gold managed another new high for the move overnight, but gold prices were unable to move markedly away from the Monday closing value of $1,374.10. The gold market might have seen a lift from dialogue from the African Barrick Gold CEO who overnight indicated that they had no plans to hedge their gold production. Gold is probably seeing some minor flight to quality support off news that protests have continued to spread in the Middle East, with Bahrain protestors being joined by protestors in Libya. The gold market might also be getting a lift from talk of strong Chinese demand for physical and derivative gold instruments. With most of the Middle East protests originally thought to be the result of rising food prices and the US scheduled to release a somewhat hot PPI report later today, the threat of inflation should be expected to remain in the headlines. However, the gold bulls have a tight rope to walk, as rising inflation in the UK and US, has already increased the scrutiny of central bankers. Therefore the afternoon release of the January US FOMC meeting minutes today could be something that results in a reaction in gold prices during the session today. On the other hand, the threat of inflation could be tempered or enhanced in the wake of US Housing figures, as the pace of the economy is also playing into US central bank policy decisions. Comex Gold Stocks were 11.175 million ounces up 2,500 ounces. Stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were mixed during overnight trading, stock indices in Europe were 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. An official Chinese newspaper said that China should let the Yuan continue to rise in order to curb imported inflation. The Egyptian military said that it wishes to hand over power to an elected government within 6 months. The head of the World Bank said that global food prices had reached dangerous levels. UK Unemployment during December was 7.9%, in-line with forecasts. Major US economic numbers to be released this morning include January Housing Starts and the January Producer Price Index at 7:30 AM, January Industrial Production at 8:15 AM, and a private survey of mortgage applications released before the opening. In addition, the minutes from the January 26th FOMC meeting will be released at 1:00 PM.