Statistics: London Gold Fix $1,777.25 +$1.25 LME Copper Stocks 223,450 tons -700 tons

GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With a slight trend of improving data potentially surfacing in the US, gold is likely to come under periodic pressure, as the prospect of additional US easing is probably tamped down in the face of positive data. However, the stream of slightly up beat US scheduled data points might be interrupted this morning by the ISM Non Manufacturing data, as early estimates call for some contraction. At least to start gold is benefiting from supportive currency market action and minimally higher US equity market action.

While silver is also showing some early strength, the rest of the physical commodity markets are giving off a slight risk-off vibe and that might be limiting gold in the early action. In fact, weakness in European equities overnight, off residual concerns toward Spain, might have capped off the initial rally in gold this morning as the Spanish issue has discouraged some gold buyers recently.

From the action yesterday, it seemed that better US data pressured gold prices and today it will be interesting to see if private jobs forecasts are seen as a more important reading, than the ISM Non Manufacturing results.

Comex Gold Stocks were 10.955 million ounces down 58,350 ounces.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Hong Kong shares managed a slight rise overnight, while mainland China markets remained closed for holiday. Europeans shares started out weaker today, despite minimally supportive news of a minor gain in Euro zone retail sales figures for the month of August. Apparently European investors are still a little disappointed with Spain's ongoing opposition to a bailout. US stocks were virtually unchanged this morning in the early going but the initial trade did seem to favor the downside.

The US trade today will be looking ahead to the first Presidential debate tonight and the markets will also see the beginning of a series of private jobs reports this morning, but that news will be accompanied by an ISM Non Manufacturing report which is generally expected to weaken.

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