Compiled 09/26/11 6:00 AM (CT) Statistics: London Gold Fix $1,615.00 -$115.00 LME Copper Stocks 465,525 tons +975 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While December gold forged another massive downside washout overnight, the gold market was able to reject some of the more severe losses in the early US Monday morning trade action. However, December gold is still trading at the lowest level since July 28th and that might leave the technical bias in favor of the bear camp to start the new trading week. The headlines overnight were filled with rather aggressive downside gold price targets, which isn't surprising considering the magnitude of the losses suffered in this market over the last several trading sessions. The bull camp might try to embrace the fact that in the early Monday US trade action, December gold was trading as much as $72 an ounce above its initial lows, while the bear camp is probably still emboldened by the four session, high to low slide of roughly $284 an ounce. It seems as if gold remains under pressure in the face of global recession fears and largely unsupported by ongoing fears of a Greece default. At least recently, the gold market seems to have a classic physical commodity market track, which could mean the gold bulls will need an end to the Euro crisis, for gold to find its footing. Comex Gold Stocks were 11.361 million ounces down 3,575 ounces. Comex Gold stocks are at the lowest in the past 10 readings. The Commitments of Traders Futures and Options report as of September 20th for Gold showed Non-Commercial traders were net long 203,032 contracts, a decrease of 21,696 contracts. The Commercial traders were net short 251,788 contracts, a decrease of 15,833 contracts. The Non-reportable traders were net long 48,755 contracts, an increase of 5,862 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 251,787 contracts. This represents a decrease of 15,834 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were generally weaker 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 lower against most of the major currencies this morning. German Chancellor Merkel stated that the powers of the European Financial Stability Facility need to be expanded in order to erect a firewall around Greece. A major US carmaker downgraded their outlook for the Chinese auto market this year, due to the end of government tax incentives and subsides. A private survey of German Business Sentiment during September was 107.5, better than market expectations, but still a decline from August. The only major US economic number to be released this morning will be August New Home Sales at 9:00 AM. In addition, Fed Regional Presidents Bullard and Kocherlakota will give speeches during the session.
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