Compiled 09/16/11 6:00 AM (CT) Statistics: London Gold Fix $1,778.00 -$25.00 LME Copper Stocks 466,025 tons -125 Shanghai Deliverable stocks were 112,061 tons -1,239 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With December gold overnight managing another new low for the move and in the process reaching the lowest price level since August 26th, the bear camp probably feels like they have an edge to start the last trading day of the week. While the dollar is slightly higher and that might be contributing some liquidation pressure to gold prices this morning, the currency market influence on gold prices this week hasn't been overly significant. The gold market should have seen some minor support from news overnight that Colombia and Russia boosted central bank gold holdings in the latest monthly report from the World Gold Council, but the trade didn't seem to be overly interested in that news. While some traders and investors think there is a risk that Greece might default this weekend, the gold market seems to facing a declining safe haven mentality. Some traders are taking note of the magnitude of the weekly decline facing the gold market this week and for some that increases the odds of further stop loss selling today. Surprisingly a pattern of lower gold prices this week, haven't prompted much in the way of value hinting buying of gold in Asia and that is probably another concern of the bull camp. Comex Gold Stocks were 11.402 million ounces down 96 ounces. Comex Gold stocks are at the lowest in the past 10 readings. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally higher 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 Australian Dollar. US Treasury Secretary Geithner will hold talks with Euro zone finance minister early today to propose leveraging their debt bailout fund to increase its effectiveness. The Euro zone Trade surplus during July was 4.3 billion Euros, higher than expectations. Major US economic numbers to be released this morning include the Treasury's report on International Capital Flows at 8:00 AM, and a private survey of US Consumer Sentiment just before 9:00 AM.
Join the Discussion