Compiled 02/17/11 6:00 AM (CT) Statistics: London Gold Fix $1377.00 +$2.50 LME Copper Stocks 407,200 tons +1,400 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market lacks the same bullish tilt as the gold market in the early morning action today. In other words, silver seems to be missing some of the classic inflation/flight to quality impetus that is serving to lift gold prices. Some players are suggesting that silver is tracking with copper and industrial markets, instead of tracking gold and the financial markets. However, given the rather robust gold demand news presented from the World Gold Council overnight, it is possible that silver will see some spillover support from ideas that China and India will also see growth in silver demand. Many traders think that gold prices will continue to lead silver prices in both directions, but silver and copper prices could see more pressure in the event that the Middle East crisis becomes a threat against global growth. Comex Silver Stocks were 102.535 million ounces down 302,311 ounces. Silver stocks have declined 13 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 stronger this morning. Early indications are for the US stock market to open near unchanged levels. The Dollar is slightly weaker against most of the major currencies during overnight trading. Foreign direct investment in China during January was up over 23% from the previous year's totals. A member of the Bank of England's monetary policy committee has stated that UK interest rates need to be hiked sooner in order to bring inflation back to target levels. Major US economic numbers to be released this morning include Weekly Jobless Claims and the January Consumer Price Index at 7:30 AM, and January Leading Indicators and the Philadelphia Fed business conditions survey for February at 9:00 AM. In addition, Fed regional Presidents Fisher and Evans will give speeches during the session.
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