Compiled 02/14/11 6:00 AM (CT) Statistics: London Gold Fix $1356.75 -$2.25 LME Copper Stocks 401,775 tons +5,050 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The March silver market sits closer to the upper end of last Friday's highs, than the gold market in the early Monday US trade. With silver and platinum showing some initial strength this morning, it would appear that the quasi industrial precious metals markets are starting out on a stronger footing than the gold market. The technical traders are also suggesting that March silver has continued a pattern of lower highs on the charts and that could make last Friday's high of $30.28 a somewhat critical pivot point early this week. While silver is seeing some gains in certain grain and commodity prices overnight, there doesn't appear to be a clear cut inflation threat in place this morning. Comex Silver Stocks were 102.424 million ounces down 423,076 ounces. Comex Silver Stocks are at the lowest levels since 08/11/2006. Silver stocks have declined 14 of the last 20 days. The Commitments of Traders Futures and Options report as of February 8th for Silver showed Non-Commercial traders were net long 39,229 contracts, an increase of 6,067 contracts. The Commercial traders were net short 53,640 contracts, an increase of 5,787 contracts. The Non-reportable traders were net long 14,411 contracts, a decrease of 281 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 53,640 contracts. This represents an increase of 5,786 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were generally higher during overnight trading, early indications are for the US stock market to open near unchanged levels this morning. The Dollar is moderately higher against most of the major currencies during overnight trading, although losing ground against the Yen. Events in Egypt have calmed down since the resignation of President Mubarak late last week, but other nations in the region have begun to see protests. Euro zone Finance Ministers are meeting today to discuss the mechanics of their rescue fund. There are reports that a major German savings bank is having problems with putting together a restructuring plan. The Chinese Trade surplus during January was $6.5 billion, lower than expectations and due mainly to a 51% jump with imports over last year's levels. Japanese GDP during the fourth quarter of 2010 was down 0.3%, a smaller decline than expected. Euro zone Industrial Production during December was down 0.1%, a smaller decline than forecasts. There are no major US economic numbers to be released this morning. However, Fed regional President Dudley will give a speech during the session.
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