Compiled 10/04/11 6:00 AM (CT) Statistics: London Gold Fix $1,672.00 +$12.00 LME Copper Stocks 474,950 tons +1,250 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With ongoing Euro zone debt fears in place off ideas that Greece will miss their fiscal targets, it isn't surprising to see gold prices on an initial positive track again this morning. However, the gold market might be seeing some resistance from adverse currency market action again but with the sharp gains in gold prices forged off of the September low, the gold trade has seen the influence of currency market action as a less important factor recently. On the other hand, gold might see some classic resistance for prices today, off Gold Fields Mineral Services suggestions that some gold miners might add to gold hedges ahead. While GFMS predicted hedging action in gold ahead, the amount of gold hedging didn't seem to be significant given the large size of the world gold market. The gold market does seem to be settling back into a flight to quality mode again, as the Greek debt crisis has rekindled interest in the safe haven harbor instruments again. However, the gold market might also be getting some support from US/Chinese tensions, as China overnight has suggested a trade war will unfold if the US passes the currency manipulation bill currently up for debate. While the US will release a factory orders report this morning, the recent shift back toward a safe haven focus might mean the scheduled US data will have less influence on gold prices. Apparently a major brokerage firm turned bullish toward gold prices overnight and another international financial institution upped its price target for gold last night. Comex Gold Stocks were 11.211 million ounces down 11,483 ounces. Stocks have declined 13 of the last 20 days. Comex Gold stocks are at the lowest in the past 10 readings. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Asia and Europe were weaker during overnight trading. Early indications are that US equity markets will open with moderate losses later on today. The US Dollar was stronger against most of the major currencies this morning but is posting a small loss versus the Yen. Euro zone Finance Ministers will delay an aid payment to Greece until November, and they are reviewing their current debt swap agreement for banks to take larger losses on Greek sovereign debt. Euro zone PPI during August was up 5.9% year-on-year, slightly higher than market expectations. Australia's trade surplus during August was 3.1 billion Australian Dollars, much above estimates and the second largest on record. Major US economic numbers to be released this morning, include August Factory Orders at 9:00 AM, and private survey of store sales released during the session. In addition, Fed Chairman Bernanke will speak in front of a joint Congressional committee today.
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