Compiled 03/04/11 6:00 AM (CT) Statistics: London Gold Fix $1418.00 -$12.50 LME Copper Stocks 425,300 tons +1,250 tons Shanghai Deliverable stocks were 157,765 tons -336 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Like gold, the silver market has fallen back from this week's highs on a combination of long profit taking and a decline in macro economic uncertainty. Clearly seeing US economic numbers point to growth has started to foster concern that easy US policy might come to an end and that in turn makes today's US economic readings pretty important. Part of the setback in silver prices this week also seems to have come from ideas that the situation in Libya might come to a favorable end but with both sides in the Libyan conflict claiming to battle to the end with no compromises, it might be premature to anticipate an end game. The silver market was presented with news of higher silver production from Silver Wheaton late yesterday and perhaps that news prompted some of the selling pressure yesterday. Surprisingly silver prices were not able to benefit from rising equities and positive US economic data and that suggests silver's industrial focus isn't as dominant as the flight to quality focus. In the end, silver and gold seem to be detecting a tilt toward tightening US monetary policy and therefore the US numbers today look to be extremely important to many physical commodity markets. Comex Silver Stocks were 103.518 million ounces, down 12,530 ounces. Silver stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia and Europe were stronger during overnight trading, early indications are for the US stock market to open today's session with moderate gains this morning. The Dollar is close to unchanged levels against most of the major currencies during overnight trading, but is posting gains against the Yen and the Pound. Rebels in Libya have stipulated that negotiations can only take place if Muammar Gaddafi resigns or goes into exile. China announced that they will increase their defense budget by over 12% this year. The President of the Bundesbank told a group of central bankers that global economic imbalances could worsen faster than expected due to the surge in crude oil prices. A private survey of UK Housing Prices during February was down 0.9%, weaker than expected. Major US economic numbers to be released this morning include the February Unemployment Rate, February Non-Farm Payrolls, February Private Payrolls, February Average Hourly Earnings and February Average Workweek at 7:30 AM, and January Factory Orders at 9:00 AM. In addition, Fed Vice Chairman Yellen will a give speech during the session.
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