Compiled 02/04/11 6:00 AM (CT) Statistics: London Gold Fix $1347.50 +$15.00 LME Copper Stocks 394,150 tons -325 tons Shanghai Deliverable stocks were 134,298 tons +5,048 (2/1) GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market started to recover yesterday just prior to the release of the second set of US economic readings. However, some traders suggested that the sharp recovery extension yesterday was primarily the result of signs that the Egyptian situation might be poised to worsen and therefore the gold market will continue to follow the events in the Middle East closely. Overnight Officials from an EU summit issued statements pushing Mubarak toward a transition government and that might give the anti government protestors even more resolve today. April gold prices have entered the Friday US trade still in what many might suggest is a breakout zone, as gold prices generally remain above the last six days consolidation highs. Given the reaction in gold prices this week to better than expected US scheduled data, it is not a clear bet that a favorable payroll result this morning will serve to lift gold prices. Some players suggested that gold prices were lifted yesterday morning by the increased prospect of more uncertainty in Egypt and others suggested that dovish commentary from the Federal Reserve Chairman provided gold with its lift and therefore the reaction to the 7:30 numbers this morning should prompt a noted reaction. Gold derivative instruments seemed to regain some inflows overnight and that might be a factor that provides some residual support to gold prices this morning. Comex Gold Stocks were 11.379 million ounces down 23,314 ounces. Gold stocks have declined 12 of the last 20 days. Comex Gold stocks are at the lowest in the past 10 readings. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally higher during overnight trading, early indications are for the US stock market to open near unchanged levels this morning. The Dollar is near unchanged levels against most of the major currencies during overnight trading. Protestors in Egypt are expected to hold another large rally in Cairo, while President Mubarak has stated that his immediate departure would bring chaos to that nation. EU leaders will hold a summit today to discuss ideas for strengthening their current bailout fund. The Royal Bank of Australia said that the effects of recent flooding in Queensland would not affect their interest rate policy. A private survey of UK Housing Prices during January was up 0.8%, higher than expectations. Major US economic numbers to be released this morning include January Non-Farm Payrolls, January Private Payrolls, and the January Unemployment Rate at 7:30 AM. In addition, Fed regional President Fisher will give a speech later during the session.
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