Compiled 02/29/12 6:00 AM (CT) Statistics: London Gold Fix $1,788.00 +$13.25 LME Copper Stocks 296,425 tons -2,425 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The April gold contract managed a slight rise in the wake of the LTRO results and that suggests the trade was attempting to embrace a risk on mentality. The bull camp might suggest that the liquidity move provides the gold market with fresh support and the flow of scheduled data from the US today might quickly take control over gold prices. Economic news from the Euro zone overnight was a little soft, with some German readings a little discouraging and Indian growth readings falling to the weakest levels in nearly 3 years overnight. Gold might still be drafting some support from news yesterday from an Iranian central bank official, who suggested that Iran was planning to accept gold in exchange for some sanctioned activities. However, holding back gold prices somewhat overnight was talk that Indian February gold imports might have softened considerably from year ago levels. Some traders might suggest that slightly higher oil prices today is being seen as a limiting development, especially with the euro failing to gain traction off the LTRO action. However, US equities are showing some positive early action and that helped the metals complex initially show some positive across the board action in the early Wednesday US trade action. Gold continues to be a physical commodity market in need of growth hopes and therefore the level of the US GDP reading this morning and the Chicago PMI report later on, will probably need to hint at a positive progression in the economy for gold to push into even higher ground on the charts. Comex Gold Stocks were 11.427 million ounces up 96 ounces. Stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were higher overnight feeding higher again off the upcoming European LTRO injection. European equity markets were also higher in anticipation of the European liquidity effort. Early US equity market action was showing minimally positive action, partly off anticipation of the ECB action but also because of slightly lower European debt yields. The ECB LTRO offering was apparently slightly higher than some expectations at 529 billion Euros, but the instant reaction was for some softening in European and US equity prices. Some players saw the news of 800 bidders in the LTRO as a sign that more banks needed the money, while others suggest that the success of the prior LTRO simply inspired more players this time around. In looking ahead to the US trade today, the markets will see a weekly mortgage application survey, a US 4th quarter GDP report, a Chicago PMI reading and a Fed Beige book release in the afternoon trade. The market might not see much of a reaction to the US GDP report, because the figure today is a revision, but the market will probably take notice of the Chicago PMI reading which is largely expected to post a slight improvement. There will also be a couple Fed speeches today, with the US Fed Chairman providing semi annual testimony to Congress and that will be capped off later on by the release of the Fed Beige Book.