Compiled 10/07/11 6:00 AM (CT) Statistics: London Gold Fix $1,651.00 +$2.00 LME Copper Stocks 467,100 tons -4,625 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market overnight managed a climb back above $1,650 and it is difficult to determine whether gold is poised to assume a flight to quality track, or if gold will take its direction from classic physical commodity market fundamentals. Some bulls are suggesting that hope for progress on the Euro zone debt front this week, was behind the bounce in gold prices and that would seem to argue for the classic physical commodity market track. However, a portion of the bull camp might have been emboldened by news that Moody's downgraded 12 UK banks overnight, as that would seem to push the debt crisis out beyond the Euro zone. Some gold buyers might have stepped up this week because of several hints of additional quantitative easing from major central bankers. To some traders, December gold needs to regain the first retracement level off the sharp September and October slide, with a rise above $1,683.40 today, or the trend will technically remain down. So far this week, the ebb and flow of action in the currency markets has been of little concern to the gold trade and that pattern might be expected to continue again today. Comex Gold Stocks were 11.082 million ounces down 572 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 were generally higher during overnight trading, stock indices in Europe are moderately lower this morning. Early indications are that US equity markets will open with moderate losses later on today. The US Dollar is close to unchanged levels against most of the major currencies this morning, although posting a loss versus the Pound. The Bank of Japan kept Japanese benchmark interest rates unchanged at today's monetary policy meeting. A major credit ratings agency downgraded 12 UK and 9 Portuguese financial institutions, due in large part to the Euro zone debt crisis. A Senate vote on the Chinese Currency bill is expected to be delayed until next Tuesday. UK PPI during September was up 6.3% year-on-year, higher than market expectations. Major US economic numbers to be released this morning, will include September Non farm Payroll, September Private Payroll and September Unemployment at 7:30 AM, and August Wholesale Inventories at 9:00 AM. The market will also see a consumer credit report later in the trading session. In addition, Fed Regional Presidents Fisher and Lockhart will give speeches during the session.