Compiled 02/07/11 6:00 AM (CT) Statistics: London Gold Fix $1347.00 -$.50 LME Copper Stocks 393,525 tons -625 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Despite some weak initial action in gold prices, March silver prices have managed a fresh higher high for the move in the early Monday US trade. The silver market might be drafting off initial strength in copper prices overnight and it is also possible that silver is benefiting from initial gains in US equities. Silver derivative instruments continue to see some exodus and that is something that could keep silver prices somewhat off balance at the start of the new trading week. However, silver prices are easily outperforming gold and platinum prices in the early action today and that would seem to suggest that silver is benefiting from its physical commodity market standing in the wake of the somewhat favorable US unemployment report reading late last week. Comex Silver Stocks were 102.511 million ounces down 415,538 ounces. Comex Silver Stocks are at the lowest levels since 08/11/2006. The Commitments of Traders Futures and Options report as of February 1st for Silver showed Non-Commercial traders were net long 33,162 contracts, an increase of 2,465 contracts. The Commercial traders were net short 47,853 contracts, an increase of 1,296 contracts. The Non-reportable traders were net long 14,692 contracts, a decrease of 1,167 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 47,854 contracts. This represents an increase of 1,298 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe were generally higher this morning. Early indications are for the US stock market to open with moderate gains this morning. The Dollar is slightly weaker against most of the major currencies during overnight trading, although posting a gain against the Yen. The Mubarak government in Egypt has been negotiating with opposition leaders over the weekend, but no substantive agreements have been reached. A Governor of the Bank of Japan has stated that the Japanese economy is coming out of a lull. India's GDP grew at a rate of 8.6% over the past 12 months, in line with forecasts. German Industrial Production during December was down 3.4% and that was lower than expectations. There are no major US economic numbers to be released this morning.
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