Compiled 08/30/11 6:00 AM (CT) Statistics: London Gold Fix $1,787.00 N.A. LME Copper Stocks 464,375 tons -550 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market showed some fleeting moments of renewed strength yesterday, but that sentiment wasn't maintained fully overnight. However, the gold market is showing some minor strength in the early US Tuesday trade in the wake of soft equities and weak Euro zone economic data. On the other hand, the dollar is showing some strength this morning and that has served to detract from the bullish environment in gold to start the US trade. With weaker equities and concern for the pace of the Euro zone economy already in place this morning, the gold trade will be looking to US Consumer Confidence and home price readings for signs of macro economic uncertainty and anxiety. With the expectations for the Consumer Confidence report calling for fairly significant declines this morning it is possible that macro economic uncertainty could rise again and gold could see renewed favor. While the Asian gold market overnight was supposedly supported by strong physical demand, the Asian gold market action wasn't definitive enough to fully rekindle the bullish buzz for gold. In addition to scheduled US data, the gold market will also see two Fed speeches that are likely to be dissected for signs of easing. The market will also see an FOMC meeting minutes release in the early afternoon trade and that report is likely to confirm conflict within the Fed and for many traders that news should provide some support to gold prices. The big question for the gold trade today is whether or not gold will see slower economic readings as a cause to buy gold, or if slowing will be cause to dump gold? Comex Gold Stocks were 11.584 million ounces up 5,400 ounces. Comex Gold stocks are at their highest levels in the past 10 sessions. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were mixed during overnight trading, early indications are that US equity markets will open with moderate losses later on today. The US Dollar is stronger against most of the major currencies this morning, although posting a loss versus the Japanese Yen. Italy sold 3.75 billion Euros worth of bonds in their first debt auction since the European Central Bank started to purchase their debt. Japanese Unemployment during July was 4.7%, higher than projections. Japanese Retail Sales during July were up 0.7%, lower than expectations. Euro zone Economic Sentiment during August was 98.3, lower than forecasts. Euro zone Consumer Sentiment during August was -16.5, roughly in-line with expectations. Major US economic numbers to be released this morning include a private survey of US Home Prices at 8:00 AM, a private survey of US Consumer Sentiment at 9:00 AM, and private surveys of store sales released during the session. There will also be two Fed speeches during the trade today and an FOMC meeting minutes release early this afternoon.
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