Compiled 08/31/11 6:00 AM (CT) Statistics: London Gold Fix $1,826.00 N.A. LME Copper Stocks 463,825 tons -550 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While the gold market has started the Wednesday US trade action off slightly weaker, gold prices remain within relatively close proximity to their recent highs. However, with global equity markets starting out positive this morning and the dollar slightly higher, the bear camp might feel like they have a slight edge to start. Economic data overnight was mostly uneventful, with German jobless readings mostly steady and the German Cabinet approving a draft for alterations to the Euro zone Stabilization fund. In other words, Euro zone debt concerns weren't specifically fanned overnight and that could allow the focus to shift back toward the US economy. Some traders probably fear the private jobs estimates this morning, but the trade is unlikely to come away from the readings with an all clear vibe on the US jobs situation. Some gold traders saw the interaction between the President and the Speaker of the house on government regulation yesterday as a minor bearish development, but it is also clear that Washington would rather tackle lesser issues than the necessary spending cuts. In addition to news of some central bank gold buying in July (Russia and Colombia) the gold market might be seeing some support this morning off suggestions that the PBOC should increase their gold holdings. In the end, the gold market continues to focus on the ebb and flow of macro economic uncertainty and therefore the track of private jobs estimates and US factory orders data should have an noted impact on gold price action this morning. Some traders think gold will see some light profit taking, off a private jobs gain estimate of +100,000, while others think that weakness in the Chicago PMI report will serve to keep macro economic uncertainty in place. Some traders are pointing to the start of a mid east seasonal buying period as a potential supporting factor for gold directly ahead. Comex Gold Stocks were unchanged at 11.584 million ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in both Asia and Europe were stronger during overnight trading, early indications are that US equity markets will open with substantial gains later on today. The US Dollar is near unchanged levels against most of the major currencies this morning, although posting a gain versus the British Pound. The German cabinet approved expanding the powers of the Euro zone's emergency bailout fund. The Chinese Premier stated that fighting inflation is still a top priority of his nation's economic policy. UK Consumer Confidence during August was -31, better than expectations. Japanese Industrial Production during July was up 0.6%, lower than forecasts. Japanese Housing Starts during July were up 21.2% year-on-year, much higher than projections. German Retail Sales during July were unchanged, better than expected. German Unemployment during August was 7.0%, in-line with forecasts. Euro zone CPI during August was up 2.5% year-on-year, in line with forecasts. Euro zone Unemployment during July was 10.0%, slightly higher than expected. Major US economic numbers to be released this morning include a private survey of National Corporate Employment at 7:15 AM, July Factory Orders as well a private survey of Business Sentiment in the Chicago Area at 9:00 AM, and a private survey of mortgage applications released before the session. In addition, Fed Regional President Lockhart will give a speech during the session.
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