Compiled 09/06/11 6:00 AM (CT) Statistics: London Gold Fix $1,891.00 +$37.00 LME Copper Stocks 465,375 tons -225 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market ramped up to another new high overnight but that action was tempered somewhat by reports of currency intervention overnight. While gold seemingly became short term technically overbought, with the sharp upward extension overnight, residual macro economic uncertainty toward the US economy and renewed European debt concerns have rekindled safe haven interest in gold regardless of the adverse currency market action. Some gold traders might even suggest the Swiss Franc was damaged as a flight to quality instrument by the SNB peg and that in turn leaves gold as part of a shrinking flight to quality contingent. While US equities are expected to open sharply lower this morning and that might add to the uncertainty in the marketplace, it could take a noted decline in the ISM Non Manufacturing reading to push fresh additional buying into gold, especially after the additional range up action this morning. The gold market could have garnered some support from news that the Russian central bank was planning to buy some gold this week, but the quantity of that anticipated purchase wasn't that significant. The gold market might also be impacted by a Fed speech around mid session today, as the promise of easing from the Fed might tamp down some macro economic concerns. Comex Gold Stocks were 11.584 million ounces up 7,570 ounces. Gold stocks have increased 11 of the last 20 days. The Commitments of Traders Futures and Options report as of August 30th for Gold showed Non-Commercial traders were net long 232,638 contracts, a decrease of 15,331 contracts. The Commercial traders were net short 274,457 contracts, a decrease of 15,182 contracts. The Non-reportable traders were net long 41,820 contracts, an increase of 149 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 274,458 contracts. This represents a decrease of 15,182 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were generally lower during overnight trading, stock indices in Europe are stronger this morning. Early indications are that US equity markets will open with substantial losses later on today but well above their overnight lows. The US Dollar is close to unchanged levels against most of the major currencies this morning, with large gains forged versus the Swiss Franc and Japanese Yen. The Swiss National Bank announced that the Swiss Franc will have a minimum exchange rate of 1.20 Francs to the Euro. The German Finance Minister stated that Greece will get no more emergency debt aid if that nation does not receive a positive result from ECB and IMF inspectors. Euro zone Retail Sales during July were up 0.2%, above market forecasts. Euro zone GDP during the second quarter was up 1.6% year-on-year, in line with expectations. The only major US economic number to be released this morning will be a private survey of US non-Manufacturing industries during August at 9:00 AM. In addition, Fed Regional President Kocherlakota will give a speech during the session.
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