Compiled 02/09/11 6:00 AM (CT) Statistics: London Gold Fix $1362.50 +$8.50 LME Copper Stocks 396,400 tons +4,375 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market wasn't able to claw out a fresh new high for the move overnight but silver prices remain within striking distance of the Tuesday highs, which were the result of a very sharp range up extension. It appeared as if silver was lifted because of ideas that the Fed was poised to leave easy money conditions in place, even in the face of growing inflationary pressures. Therefore the tone of the Fed Chairman testimony today could be a very important development for silver prices today. The silver market might be partially undermined by news of record physical silver production from Silvercorp in their 3rd quarter figures. However, the market generally thinks that rising physical silver production will be overshadowed by further gains in investment demand. Some traders continue to tout silver, as a cheaper alternative to gold and that type of mentality has probably helped March silver in its somewhat impressive recovery move off the January lows. Comex Silver Stocks were 103.053 million ounces down 252,945 ounces. Silver stocks have declined 14 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe are mixed during overnight trading, early indications are for the US stock market to open with moderate losses this morning. The Dollar is weaker against most of the major currencies during overnight trading, although posting a small gain versus the Yen. Military talks between North and South Korea have broken off, with no further meetings scheduled. A credit ratings agency warned Japan that unsuccessful fiscal reforms could have a negative impact on their credit rating. The German Trade Surplus during December was 14.0 billion Euros, higher than forecasts. The UK Trade Deficit during December was 9.25 billion Pounds, larger than expectations. US economic numbers this morning include a private survey of mortgage applications released before the opening. The second leg of the US monthly refunding, the 10-Year Note auction, will have results announced at 12:00 PM. In addition, Fed Chairman Bernanke will provide testimony for the House Budget Committee this morning.
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