Compiled 11/06/12 6:00 AM (CT)
Statistics: London Gold Fix $1,691.75 +$12.75 LME Copper Stocks 247,400 tons +6,075 tons
GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Apparently a number of gold traders think that the fiscal cliff will be avoided regardless of who wins the election, as gold and equities are on the rise this morning, despite news that the election remains a virtual dead heat. News from Gold Fields that mining strikes have ended, could have been a negative to gold this morning but gold prices have instead managed to claw out fairly impressive early gains. In fact, December gold was also able to buck some initial adverse currency market action and that in turn allowed gold to forge a low to high bounce from this week's lows of roughly $20 an ounce. A number of physical commodity markets like gold, might be poised to benefit from an end to the election process and that in turn could usher in a relief rally of sorts. Gold players in India were inactive overnight, perhaps because they filled a portion of their seasonal needs into the recent lows. At least in the short term, the gold market might be expected to correlate with the US equity markets, especially since the US report slate today is rather thin. Comex Gold Stocks were 11.253 million ounces down 32 ounces.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) The Shanghai composite finished weaker today and the Hong Kong market was also weaker off residual concerns toward HSBC. Japanese shares were also weaker, as lingering fears of slumping car sales to China weighed on that index. European stocks were marginally higher off positive leadership from the tech sector. While UK September Manufacturing output rose minimally on the month, that reading was down compared to year ago levels and that in turn has kept some interest for BOE easing alive in the marketplace. In looking ahead to the US action today, the report slate will be mostly thin, with private weekly chain store sales figures due out and a 3rd tier job openings and labor turnover survey release. However, given the prospect of intense wall to wall US election coverage, traders probably shouldn't expect to see much of a reaction to basic economic headlines today.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.