Statistics: London Gold Fix $1,679.00 -$29.25 LME Copper Stocks 241,325 tons -1,650 tons
GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Gold found some bargain hunting buying interest overnight, perhaps because of the pronounced slide in gold at the end of last week. Hong Kong saw a slight increase in buying overnight, which isn't surprising when one considers that gold prices overnight were as much as $126 an ounce below last month's high. Furthermore, gold reportedly saw some increased buying interest overnight from Indian buyers, who might have been looking to obtain supply for the coming festival period. Indian currency action has hindered seasonal purchasing of gold this year, but some players think the month long slide in gold prices will now stimulate seasonal gold purchasing. Gold might have been somewhat undermined by a forecast that China might post a record output of 380 tons of gold this year, but that news is offset by suggestions that Chinese demand for gold would also rise to 850 tons, which in turn would be the world's largest gold demand tally. Comex Gold Stocks were 11.253 million ounces up 6,430 ounces. Comex Gold Stocks are now at the highest levels since 04/04/2012. The Commitments of Traders Futures and Options report as of October 30th for Gold showed Non-Commercial traders were net long 193,394 contracts, a decrease of 11,342 contracts. The Commercial traders were net short 248,182 contracts, a decrease of 10,570 contracts. The Non-reportable traders were net long 54,788 contracts, an increase of 772 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 248,182 contracts. This represents a decrease of 10,570 contracts in the net long position held by these traders.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese shares were weaker perhaps because of spillover influences from the US stock market slide at the end of last week. European stocks also tracked the weakness seen in the US at the end of last week overnight. However, the FTSE was also under some fresh pressure today because of some weak UK services data that came in weaker than expectations. In addition to the US election, the markets are also looking ahead to a Chinese leadership shift later this week. In Athens Greece there will be a vote Wednesday on austerity measures and there are fears that the measures will not pass. Ahead of the Greece vote, there will be two days of general strikes. In the US action today, the market will see an ISM Non Manufacturing Report and an employment trends Index.
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