Compiled 02/04/11 6:00 AM (CT) Statistics: London Gold Fix $1347.50 +$15.00 LME Copper Stocks 394,150 tons -325 tons Shanghai Deliverable stocks were 134,298 tons +5,048 (2/1) SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The March silver contract enters the Friday US trade within relatively close proximity to the prior session's highs. Like gold, silver was lifted sharply yesterday morning in the lead up to the US Fed speech, but some players think that renewed uncertainty in Egypt was responsible for the precious metals market recovery yesterday. Therefore the focus of the silver trade seems to be divided among a number of different themes and the reaction to the Payroll numbers this morning looks to be a very telling event. While silver hasn't paid that much attention to classic supply side news lately, the market was presented with evidence of rising US silver supply overnight from the United States Geological Survey for last October. There is some initial divergence among the metals markets this morning, with silver and copper managing stronger performance than gold and platinum prices. Apparently interest in silver derivative instruments continued to wane overnight and to some that suggests the silver market remains off balance. Comex Silver Stocks were 102.927 million ounces down 667,368 ounces. Comex Silver Stocks are at the lowest levels since 09/22/2006. Stocks have declined 14 of the last 20 days. 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 near unchanged levels against most of the major currencies during overnight trading. Protestors in Egypt are expected to hold another large rally in Cairo, while President Mubarak has stated that his immediate departure would bring chaos to that nation. EU leaders will hold a summit today to discuss ideas for strengthening their current bailout fund. The Royal Bank of Australia said that the effects of recent flooding in Queensland would not affect their interest rate policy. A private survey of UK Housing Prices during January was up 0.8%, higher than expectations. Major US economic numbers to be released this morning include January Non-Farm Payrolls, January Private Payrolls, and the January Unemployment Rate at 7:30 AM. In addition, Fed regional President Fisher will give a speech later during the session.
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