Compiled 03/02/11 6:00 AM (CT) Statistics: London Gold Fix $1430.50 +$16.00 LME Copper Stocks 423,550 tons +3,275 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) The silver market matched the prior session's high in the initial trade today and that would seem to leave the bull camp with a technical edge. Recent silver performance has given silver the leadership role in the precious metals complex and that sentiment was echoed with a rise in silver derivate holdings overnight. As in the gold market, the silver market is benefiting from a pattern of weakness in the Dollar, but it also seems as if silver is garnering some buying interest off inflationary expectations. With the Fed yesterday reiterating the need to continue QE2, the silver trade would seem to come by its inflation support honestly and with oil prices also expected to remain hyper sensitive, it could be difficult to remove the inflation threat from the silver trade. Given the anticipation of inflationary conditions ahead, it is possible that a favorable private jobs survey later today will actually be seen as a positive to silver prices. Comex Silver Stocks were 102.576 million ounces up 27,170 ounces. Silver stocks have declined in 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe are generally weaker during overnight trading, early indications are for the US stock market to open today's session 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. Forces allied with Libyan President Gaddafi captured a town in the eastern part of that nation, only to have rebel forces retake the town several hours later. China has set a goal to allow import and export firms to settle their transactions in Chinese Yuan by the end of this year. Euro zone Producer Prices during January were up 1.5%, higher than forecasts and the largest single-month rise on record. US economic numbers to be released this morning include private surveys of store sales and mortgage applications released during the session. Fed Chairman Bernanke will give a monetary policy report to the Senate Financial Services Committee at 9:00 AM. The Federal Reserve's Beige Book of economic conditions will be released at 1:00 PM. In addition, Fed Regional Presidents Hoenig and Lockhart will give speeches during the session.
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