Compiled 10/12/12 6:00 AM (CT)

Statistics: London Gold Fix $1,767.00 -$.25 LME Copper Stocks 215,900 tons -3,650 tons

GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market was waffling around both sides of unchanged today in the wake of early action, which showed a host of physical commodity markets trading weaker. Gold didn't seem to get a definitive benefit from an upward revision in a private gold price forecast for 2013 and gold also didn't seem to get much lift from a slightly firmer early Euro trade. Apparently gold wasn't impressed with a rise in Euro zone Industrial Output, as December gold in the early action this morning, continued to sit roughly $13 an ounce below this week's highs. In the action today, the early tone might be set early in US trade by key banking earnings results but since that news is due out in the face of a PPI report, the gold market might see a temporary increase in volatility.

With both Asian and Indian gold buyers somewhat uninterested in gold this week, even in the face of a noted corrective slide in prices recently that would seem to leave gold off balance and that in turn that could make the action in the US equity markets a more dominating force for gold prices today.

Comex Gold Stocks were 11.205 million ounces up 4,866 ounces. Comex Gold Stocks are now at the highest levels since 04/04/2012.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Hong Kong shares finished at multi month highs on the back of gains in banking shares and also because of lingering hope of more easing from the Chinese government. Even mainland Chinese markets were positive today and that action also seemed to be the result of ideas that the Chinese government was poised to provide more support for the slumping Chinese economy directly ahead. European markets were weaker this morning, as ongoing Earnings news disappointed investors and in turn kept slowing fears in place. However, a minor rise in Euro zone Industrial output for August should have provided European stocks with some lift.

In the early action today US share prices were marginally higher, but not strong enough to signal a risk-on environment in the early going. Today the US scheduled report slate will present a US PPI reading that is expected to be a little hot, a private consumer sentiment reading and a Richmond Fed speech all in the morning trade.

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