Compiled 01/25/11 6:00 AM (CT) Statistics: London Gold Fix $1326.00 -$21.50 LME Copper Stocks 389,075 tons +7,575 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Not to be left out, the March silver contract has also seen a noted downside washout overnight, with the market posting the lowest price since November 29th. Like gold, silver seems to be partially off balance because of declining safe haven views, but it is also possible that the fear of higher US interest rates later this year, is adding into the liquidation tilt. The silver market did see evidence of rising physical silver production overnight from a Harmony mining facility but recently silver hasn't been that interested in nominal increases in physical silver supply. With silver prices to this morning's lows, already sitting as much as $2.35 an ounce below the level where the last COT positioning report was measured, it is likely that the Spec and fund long positioning in silver is being worked down aggressively. If the silver and other metals markets are fearful of rising US interest rates ahead, then the markets should see additional selling pressure in the wake of any positive scheduled US data. Comex Silver Stocks were 105.108 million ounces up 952,800 ounces. Silver stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally weaker this morning. Early indications are for the US stock market to open with moderate losses this morning. The Dollar is stronger against most of the major currencies during overnight trading. The Bank of Japan kept Japanese benchmark interest rates unchanged, but raised their official forecast for Japanese core CPI over the next fiscal year. India's central bank raised their benchmark interest rate by 0.25%, their seventh hike since the start of last year. The European Financial Stability Facility issued their first bonds today, with indications of very strong demand. UK GDP during the fourth quarter was down 0.5%, much worse than expectations. Major US economic numbers to be released this morning include a private survey of Housing Prices at 8:00 AM, the Richmond Fed Manufacturing Index for January and a private survey of Consumer Confidence during January at 9:00 AM, and several private surveys of store sales released during the morning.
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