Compiled 02/01/11 6:00 AM (CT) Statistics: London Gold Fix $1337.50 +$4.00 LME Copper Stocks 393,925 tons -100 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The March silver market remains within striking distance of the prior session's highs and many traders suggest that the charts in silver look a little more impressive than the charts in gold. Perhaps the silver market is benefiting from its physical commodity market standing and from the recent strength in equities and perhaps the gold market remains slightly off balance because of the ebb and flow of financial issues. Like gold, silver was at least partially undermined by news overnight of outflows from some silver derivative instruments last month, but given that March silver almost saw a $5.00 per ounce slide off the January highs, it isn't surprising to see signs of liquidation within the bull camp. Silver has seemingly outperformed the gold market at times this week and that could point to a developing positive correlation with the equity markets. If silver is tracking its physical commodity market fundamentals, then prices should derive some support from the initial scheduled US data flow this morning. However, US auto sales data due in later in the trading session, might cause some weakening in silver prices, especially if adverse weather dampened the sales figures. Comex Silver Stocks were 104.580 million ounces down 104,706 ounces. Stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were generally mixed during overnight trading, stock indices in Europe are 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. The Egyptian Army has pledged not to confront protestors who are demanding an end to the Mubarak government at what is projected to be a large rally in Cairo today. The Irish Parliament will be dissolved today, with an election expected to be called for late in February. The head of the IMF said that high unemployment and global imbalances may lead to increasing amounts of trade protectionism. Euro zone Unemployment during December was 10.0%, in-line with forecasts. German Unemployment during January was 7.4%, lower than expectations. A private survey of UK housing prices during January was down 0.1%, a smaller decline than projected. Major US economic numbers to be released this morning include a private survey of US Purchasing Managers during January as well as December Construction Spending at 9:00 AM, and several private surveys of store sales and auto sales will also be released during the session.
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