Compiled 10/25/12 6:00 AM (CT)

Statistics: London Gold Fix $1,715.00 +$6.50 LME Copper Stocks 218,700 tons -3,650 tons

GOLD MARKET FUNDAMENTALS: (6:00 AM CST) At least in the early action December gold has managed to claw back above the previous day's high. With the rest of the metals complex trading in positive ground, supportive currency market action and gains in most physical commodity markets, there would appear to be a partial risk-on trade in place to start the Thursday US trade. The expectation of favorable US scheduled data and higher equities should facilitate the risk-on tilt, unless some US number trips up sentiment later on in the trading session. Gold might be drafting some support off a private gold price forecast that suggested nearby gold might be able to return to the $1,900 level in the coming 6 months of trade. While the IMF noted gold sales by Russian and Venezuelan central banks, that news was mostly offset by news that Brazil and the Ukraine were net gold buyers in the most recently monthly figures released for August. Gold might have seen some minor lift from active Indian gold buying talk overnight as local gold prices have remained low enough to spark some increased festival demand. With some residual labor problems noted at South African platinum mining facilities, gold probably wasn't undermined by news of an increase in gold production from DRD Gold in their 1st quarter. Comex Gold Stocks were 11.243 million ounces down 64 ounces. Gold stocks have increased 11 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Hong Kong stocks continued to outperform Shanghai and Shenzhen markets, with the Hang Seng index forging the highest close in roughly 14 months. European stocks were reportedly lifted because of up beat Chinese Factory output forecasts. US equities started out on a mostly positive track today perhaps because of expectations of generally positive scheduled data flows later in the trading session. Expectations call for a fairly robust increase in US durable goods, a noted decline in initial claims and a jump in pending home sales results. Also due out today, are a Chicago Fed National Activity Index and a couple of private consumer and business surveys.

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