Compiled 02/07/11 6:00 AM (CT) Statistics: London Gold Fix $1347.00 -$.50 LME Copper Stocks 393,525 tons -625 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The April gold contract appears to have fallen back within the late January/early February consolidation range, with gold prices at times overnight sitting as much as $17 an ounce below last Friday's high. The gold market might be slightly undermined as a result of news that some key gold producers are expecting to increase physical gold production in 2011, relative to 2010. While Harmony mines has predicted their output will rise over the coming two years, officials at that company also predicted more new highs for gold prices this year. Randgold also predicted higher gold production ahead, with a 2011 output that is expected to reach up to as high as 790,000 ounces. Apparently Harmony mines thinks that investment interest will keep an upward track in demand, as some rise in supply seems to be in the cards. In other news the market also saw predictions that Chinese 2010 gold production hit a new record, but that was already expected in the marketplace, along with the view that Chinese demand was also going to continue to outpace domestic gold production. Some traders think that gold is set to be off balance because US growth views will push the trade to fear a curtailment of US QE2, but others suggest that the US numbers from last Friday were not definitive enough to change the Fed's stance. Comex Gold Stocks were 11.384 million ounces up 5,100 ounces. Gold stocks have declined 11 of the last 20 days. The Commitments of Traders Futures and Options report as of February 1st for Gold showed Non-Commercial traders were net long 170,706 contracts, a decrease of 5,122 contracts. The Commercial traders were net short 214,649 contracts, a decrease of 1,831 contracts. The Non-reportable traders were net long 43,943 contracts, an increase of 3,292 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 214,649 contracts. This represents a decrease of 1,830 contracts in the net long position held by these traders. 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 with moderate gains this morning. The Dollar is slightly weaker against most of the major currencies during overnight trading, although posting a gain against the Yen. The Mubarak government in Egypt has been negotiating with opposition leaders over the weekend, but no substantive agreements have been reached. A Governor of the Bank of Japan has stated that the Japanese economy is coming out of a lull. India's GDP grew at a rate of 8.6% over the past 12 months, in line with forecasts. German Industrial Production during December was down 3.4% and that was lower than expectations. There are no major US economic numbers to be released this morning.