Compiled 10/06/11 6:00 AM (CT) Statistics: London Gold Fix $1,649.50 -$49.50 LME Copper Stocks 471,725 tons -3,200 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) At least in the early US Thursday trade, gold prices have shown a positive track. With equities higher, the dollar weaker and a number of physical commodities starting out higher, one gets the sense that gold is garnering some lift from positive physical commodity market conditions. While the situation in the euro zone isn't markedly improved, the trade this morning is generally seeing smoother waters in the wake of a lower yield outcome for a Spanish Treasury auction overnight. Gold prices might also have seen some support from inflationary warnings from a former BOE member overnight but it is possible that gold has once again shifted back into a physical commodity market standing. If gold has shifted back into a classic physical commodity market again, then slight gains in US claims readings might provide a modest setback in gold prices later this morning. With an ECB meeting today and a possible announcement due in roughly 45 minutes prior to the US claims data, it is possible that gold will be distracted from the US economic track and back onto the situation in the Euro zone. However, the ECB has disappointed the markets more often than they have satisfied the trade and since there are currently expectations for a fresh plan from the ECB, there might be expectations for something significant from today's meeting! At least to start today, the gold market seems to need favorable economic news to continue to rise up and away from the late September washout lows. Comex Gold Stocks were 11.083 million ounces down 128,443 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) While equity markets in Asia and Europe were generally higher during overnight trading, 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. The founder of Apple, Steve Jobs, passed away yesterday evening. The European Commission President Barraso overnight indicated that EU member states were having discussions on coordinated recapitalization of their banks and that was seen as a positive development for the Euro zone. German Chancellor Merkel is scheduled to meet with the heads of the IMF and World Bank later on today. The Bank of England will announce their decision on UK monetary policy at 6:00 AM. The European Central Bank will also announce their decision on Euro zone monetary policy at 6;45 AM. The only major US economic numbers to be released this morning, will be Weekly initial and ongoing Jobless Claims at 7:30 AM.
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