Compiled 08/22/11 6:00 AM (CT) Statistics: London Gold Fix $1,877.75 +$15.75 LME Copper Stocks 466,450 tons +2,825 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market has started the new trading week out with another new all time high probe and a temporary test of the even number $1,900 level on the charts. With ongoing fears of slowing in the US economy, news that the German leader is against a Euro bond offering and the uncertainty being seen in Libya, the bull camp looks to pick up where it left off last week. While global equity markets are higher and there appears to be a slight risk-on vibe in place early this morning, the fear that the US is poised to fall back into a recession is also widespread. The gold trade is starting to toss around the prospect of QE3 from the US Fed because of recent slowing evidence and also perhaps because of the upcoming Fed symposium. Some gold players are concerned that the bar for QE3 remains too high for now and that the Fed might ultimately disappoint the market when it becomes clear that the Fed is in a wait and see posture, instead of in an active easing posture. With gold prices to the highs this morning, sitting roughly $418 an ounce above the early July lows, the gold market is certainly overbought, but uncertainty toward the US economy, fears of currency market intervention, a possible fall of the Libyan government and lingering Euro zone debt fears would seem to keep the bull camp emboldened. At least early today, the gold market might be expected to take some direction from the Chicago Fed national activity index. The Commitments of Traders Futures and Options report as of August 16th for Gold showed Non-Commercial traders were net long 257,914 contracts, a decrease of 1,269 contracts. The Commercial traders were net short 306,505 contracts, an increase of 2,768 contracts. The Non-reportable traders were net long 48,590 contracts, an increase of 4,036 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 306,504 contracts. This represents an increase of 2,767 contracts in the net long position held by these traders. Comex Gold Stocks were 11.575 million ounces up 124,420 ounces. Stocks have declined 11 of the last 20 days. Comex Gold stocks are at their highest levels in the past 10. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally stronger this morning. Early indications are that US equity markets will open with moderate gains later on today. The US Dollar is currently weaker against most of the major currencies this morning, although posting a gain versus the Yen. Rebel forces are gaining control of the Libyan capital of Tripoli. The only major US economic number to be released this morning is the Chicago Fed's National Activity index.
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