Compiled 09/20/11 6:00 AM (CT) Statistics: London Gold Fix $1,792.00 -$25.00 LME Copper Stocks 466,925 tons -2,200 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The December gold contract this morning has managed to rebound from the prior session's low, but prices in general remain in the lower quadrant of the last month's trading range to start the Tuesday US trade. With the flight to quality bulls in gold clearly disappointed yesterday, in the wake of the noted US equity market slide, it would seem like the positive correlation between gold prices and equity prices is at least temporarily back in place again. Some safe haven players suggest that news of an Italian debt downgrade overnight has rekindled interest in gold, while others continue to fret over the relationship between gold and equities. Gold might be seeing some support this morning from news that Chinese gold production for the month of July was down, as that fosters talk of a rise in Chinese gold imports ahead. Demand news from India overnight was mixed, as traders haven't been particularly impressed with seasonal gold demand patterns from that key consumer of the yellow metal. In looking forward, gold bulls might have to hope for a temporary lull in the severe concerns toward Greece and they might also attempt to fan talk of additional US easing measures into the Wednesday afternoon FOMC statement release. The track of thinking into the FOMC meeting is that the Fed will announce operation twist and the ultimate impact of that action is highly controversial. At least in the early going today, it would seem like currency market action is also set to provide some limited support to gold prices. However, with gold prices showing some bounce today, that might reduce the threat of knock on or technical stop loss selling, which some players fear in the event that December gold sees a slide back below last Friday's lows. Comex Gold Stocks were 11.410 million ounces up 3,664 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally higher this morning. Early indications are that US equity markets will open with moderate gains later on today. The US Dollar is slightly weaker against most of the major currencies this morning. A major credit ratings agency downgraded Italy's sovereign debt one level, and maintained a negative outlook for that nation. Greece may be close to a deal with the IMF, EU and ECB to extend further bailout funds. German PPI during August was down 0.3%, weaker than expectations. A private survey of German economic sentiment during September was -43.3, higher than some forecasts. The Federal Reserve's Open Market Committee begins a 2-day meeting this morning, which was extended by 1 day to allow for additional discussion of issues. Major US economic numbers to be released this morning include August Housing Starts and Permits at 7:30 AM, and private surveys of store sales released during the session.