Compiled 01/12/11 6:00 AM (CT) Statistics: London Gold Fix $1383.50 +$2.50 LME Copper Stocks 378,175 tons -1,475 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market comes into the Wednesday trade facing decent Portugal auction results and in the wake of initial gains in the Euro currency this morning, it would seem like the threat of a flight to quality event off the Euro zone sovereign debt situation is at least temporarily downplayed. The bulls in gold might turn their attention toward the Spanish auction on Thursday, or the bulls might simply attempt to play up the strength in the euro and the weakness in the Dollar. It does seem like a number of physical commodity markets are leaning toward the upside today and that in turn has prompted some analysts to suggest that commodity indexes might be poised for a significant appreciation today. In fact, with a potentially critical USDA report scheduled for release this morning and the trade thinking that report could show a tightening of corn supplies, it would not be surprising to see the grain market action impact gold and other precious metals prices today. In the end, some bulls are probably going to be somewhat let down because of the lack of debt auction fireworks this morning, but noted strength in equities, a weaker Dollar and a host of gains in other physical commodity markets could provide an environment that cushions gold against declining safe haven psychology. Comex Gold Stocks were 11.684 million ounces down 14,474 ounces. Gold stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe are generally stronger during overnight trading, early indications are for the US stock market to open moderately higher this morning. The Dollar is lower against most of the major currencies during overnight trading. An Australian Central Bank board member said that this month's flooding in Queensland could cut Australian GDP growth by up to 1%. Portugal will auction up to 1.25 billion Euros worth of 4-year and 10-year bonds this morning. An EU report has stated that a one-off tax on Euro zone banks could pay for the upcoming European Stability Mechanism. Euro zone Industrial Production during November was up 1.2%, higher than expectations. German GDP during 2010 was up 3.6% year-on-year, in line with expectations. The UK Trade deficit during November was 8.74 billion Pounds, larger than forecasts. Major US economic numbers this morning include December Import and Export Prices released at 7:30 AM, and a private survey of mortgage applications released before the opening. The latest version of the Federal Reserve's Beige Book will also be released at 1:00 PM. The second leg of the Treasury's monthly refunding, the 10-year note auction, will have the auction results announced at 12:00 PM. Treasury Secretary Geithner and regional Fed President Fisher will give speeches during the session.