Compiled 09/08/11 6:00 AM (CT) Statistics: London Gold Fix $1,827.00 -$17.00 LME Copper Stocks 465,275 tons +25 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market overnight has managed to add to the bounce in gold prices that was seen yesterday afternoon. With the OECD overnight warning central banks to prepare for more slowing ahead, that seems to have rekindled some macro economic uncertainty again, especially with slowing evidence noted from Japanese machinery orders overnight and a narrowing of the German trade surplus. It is also possible that expectations of a slight change in the forward policy stance of the ECB could be providing gold with some of its buying overnight. The gold market might be somewhat off balance because of the US Presidential address tonight, as that offering is expected to clear up the direction of US fiscal policy somewhat, but if the markets fail to positively embrace that plan, gold prices could be set up for a critical reaction on Friday morning. Into the action today, equity markets in Europe were generally trading in positive ground and there were indications that the US equity markets were going to open on a positive footing. Therefore, the gold bulls might feel fortunate to have a slightly higher early Thursday morning US tilt. The US scheduled report slate has initial and ongoing claims due out, with most estimates calling for a minimal decline and those results might not be significant enough to have a noted impact on gold prices. The trade will also see a US Trade Balance report, which can tend to impact gold prices, especially with estimates calling for a slight narrowing of the US trade deficit. With the gold market seemingly rising into the President's speech, it would not seem like the trade thinks the President's plan will be seen as a development that markely lowers macro economic uncertainty. While the gold market saw evidence of minimal central bank gold sales from Libya overnight, that minor negative was probably countervailed by an upward revision in gold price projections from a major brokerage firm. In the end, some traders were thought to be buying gold off a value hunting angle in the wake of the recent correction. Comex Gold Stocks were 11.553 million ounces down 32,039 ounces. Gold stocks have increased 11 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 were mixed during overnight trading, stock indices in Europe are generally stronger this morning. Early indications are that US equity markets will open close to unchanged levels later on today. The US Dollar is slightly stronger against most of the major currencies this morning. President Obama will propose a new jobs plan during a speech in front of a joint session of Congress this evening. An official newspaper has reported that the Chinese Yuan will become basically convertible by 2015. Japanese Machinery Orders during July were down 8.2%, weaker than expectations. The German Trade surplus during July was 10.1 billion Euros, lower than market forecasts. The Bank of England will announce their decision on UK monetary policy at 6:00 AM. The European Central Bank will announce their decision on Euro zone monetary policy at 6:45 AM. Major US economic numbers to be released this morning will include the July Trade Balance and Weekly Jobless Claims at 7:30 AM. In addition, Feb Chairman Bernanke will give a speech during the session.
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