Compiled 09/27/11 6:00 AM (CT) Statistics: London Gold Fix $1,671.00 +$56.00 LME Copper Stocks 469,350 tons +3,825 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) In addition to a more upbeat attitude toward the Greek/EU debt situation, the gold market overnight also saw favorable Indian gold demand news from the World Gold Council overnight. Apparently the WGC thinks that Indian demand for gold is set to firm in the wake of a good monsoon season and also because of increased seasonal interest. Not surprisingly, the Indian gold trade was higher overnight, but that move might have simply been the result of the risk-on mentality and a wave of higher price action in many physical commodity markets. Record exchange volume in some gold instruments yesterday, might give the recent bounce even more technical credibility, but many traders think the direction of gold is still tightly wound up in the direction of the equity markets. It does seem as if dialogue from the Greek Finance Minister and German dialogue on the debt subject overnight have contributed to a minor wave of optimism on the current EU debt crisis standing. In looking forward, the gold market is likely to see some impact from a rather active slate of US economic readings today, as the gold bulls seem to need favorable economic vibes to keep the sellers at bay. The gold market will probably keep a close eye on the odds of acceptance of the latest ECB plan in voting by member countries. Comex Gold Stocks were 11.367 million ounces up 5,837 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally stronger during overnight trading, early indications are that US equity markets will open with substantial gains later on today. The US Dollar is weaker against most of the major currencies this morning. The Spanish Prime Minister stated that there was no current proposal to expand the Euro zone bailout fund to 2 trillion Euros but that didn't seem to dent optimism in many markets. The Greek Prime Minister said that he would guarantee that his nation would meet all commitments to receive further bailout funds from the IMF, EU and ECB. A private survey of German Consumer Sentiment during September was 5.2, higher than market expectations. Euro zone money growth during August was 2.8%, higher than forecasts. Major US economic numbers to be released this morning include a private survey of US Home Sales at 8:00, a private survey of US Consumer Confidence at 9:00 AM, and private surveys of store sales released during the session. In addition, Fed Regional Presidents Lockhart and Fisher will give speeches during the session.
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