Compiled 02/03/11 6:00 AM (CT) Statistics: London Gold Fix $1332.50 -$4.50 LME Copper Stocks 394,475 tons +700 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market looks to start the Thursday US trade in the lower quarter of the prior days trading range. While silver this morning is initially outperforming the gold market, the silver trade hasn't been able to definitively benefit from favorable currency market action this week or from positive economic signals. The bull camp will suggest that silver has still carved out a pattern of higher highs on the charts for the last seven days, but the fear of rising interest rates seems to be countervailing the prospect of inflation ahead. It would seem like ongoing violence in Egypt is also being seen as a negative for silver and other physical commodity markets. However, the silver market will probably be watching the dialogue from the ECB closely this morning and also the dialogue from the US Fed Chairman later in the session, as any hint of fighting inflation could threaten the pattern of higher highs that has quietly formed on the charts. Comex Silver Stocks were 103.594 million ounces up 177,634 ounces. Silver stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were mixed during overnight trading, early indications are for the US stock market to open near unchanged levels this morning. The Dollar is slightly stronger against most of the major currencies during overnight trading, although posting a loss against the Pound. Supporters of President Mubarak continue to clash with Egyptian protestors, with the Muslim Brotherhood now calling for a national unity government to replace Mubarak. Cyclone Yasi made landfall on the Queensland coast of Australia, and was expected to move well inland before losing much of its power. The UN's Food Price Index reached a record level during January, with projections for even higher levels ahead due to bad global weather. The European Central Bank is expected to keep benchmark Euro zone interest rates unchanged at their monetary policy meeting today. Euro zone Retail Sales during December were down 0.6%, lower than expectations. Major US economic numbers to be released this morning include Weekly Jobless Claims and fourth quarter Non-Farm Productivity at 7:30 AM, December Factory Orders as well as a private survey of US non-Manufacturing Business Activity at 9:00 AM, and a private survey of US employment released before the opening. In addition, Fed Chairman Bernanke will give a speech during the session.
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