Compiled 03/02/11 6:00 AM (CT) Statistics: London Gold Fix $1430.50 +$16.00 LME Copper Stocks 423,550 tons +3,275 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Apparently the situation in the Middle East has not resulted in a flight to quality flow toward the Dollar and that in turn has seemingly increased the flight to quality flow toward gold and other precious metals markets. While the overnight gains in gold weren't overly impressive, prices remain near record ground, which in turn has kept the headline buzz in the gold bull's court. News that pro-Gaddafi forces might have retaken a rebel held city temporarily looks to keep the Libyan conflict in the headlines again today and apparently the gold market isn't overly concerned of further testimony from the Fed later today. While it might be premature to focus on the possible events of March 11th, it could be difficult to tamp down the threat of further Middle East tensions until after the day of protest in Saudi Arabia has past. News of protests in Iran yesterday seemed to unnerve the US equity markets and that highlights the presence of high anxiety in a number of markets. The gold market will be presented with a private jobs survey today that is generally expected to show a noted improvement and to some traders that news looks to support gold prices. In fact, decent US economic readings lately haven't lent that much support to the Dollar and to some traders seeing stronger US economic readings, simply signals an increased prospect of inflation later this year. Comex Gold Stocks were 11.147 million ounces up 71,800 ounces. Gold stocks have declined in 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe are generally weaker during overnight trading, early indications are for the US stock market to open today's session with moderate gains this morning. The Dollar is slightly weaker against most of the major currencies during overnight trading, although posting a gain against the Yen. Forces allied with Libyan President Gaddafi captured a town in the eastern part of that nation, only to have rebel forces retake the town several hours later. China has set a goal to allow import and export firms to settle their transactions in Chinese Yuan by the end of this year. Euro zone Producer Prices during January were up 1.5%, higher than forecasts and the largest single-month rise on record. US economic numbers to be released this morning include private surveys of store sales and mortgage applications released during the session. Fed Chairman Bernanke will give a monetary policy report to the Senate Financial Services Committee at 9:00 AM. The Federal Reserve's Beige Book of economic conditions will be released at 1:00 PM. In addition, Fed Regional Presidents Hoenig and Lockhart will give speeches during the session.
Join the Discussion