Compiled 10/10/11 6:00 AM (CT) Statistics: London Gold Fix $1,664.00 +$12.00 LME Copper Stocks 462,625 tons -4,755 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The joint announcement from the German Chancellor and the French President coming on the heels of some better than expected US data on Friday, as well as some improvement in European economic numbers this morning has apparently sparked a risk on attitude towards today's trade. The dollar is weak against most currencies, which is lending support across all commodities, including gold. There also seems to be a renewed, cautious optimism about the US economy, with some reports this morning that it has dodged a bullet with regards to a double-dip recession, as some analysts have revised 3rd Quarter growth projections higher. The Columbus Day holiday will probably keep trade volume down today and may hinder the gold market's ability in gaining much upward momentum. Comex Gold Stocks were 11.116 million ounces up 32,030. Friday's Commitments of Traders report presented a mixed picture, with large specs adding to their net long positions as of last Tuesday (October 4th) but small specs as heavy sellers. The report showed non-commercial traders were net long 162,314 contracts, an increase of 3,560. Non-commercial and nonreportable traders combined held a net long position of 196,205 contracts, a decrease of 3,547. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were mixed during overnight trading, stock indices in Europe were moderately higher this morning. Early indications are that US equity markets will open with sizable gains today. The US Dollar is weaker against most of the major currencies. German Chancellor Merkel and French President Sarkozy pledged to recapitalize Europe's banks and announced that they would have a plan in place within three weeks. The Chinese Vice Foreign Minister stated that passage of the US Currency Bill might have adverse impact on US-Chinese ties. The German Trade surplus during August was 13.8 billion Euros, higher than market expectations. French Industrial Production during August was up 0.5%, also higher than market forecasts. There will be no major US economic numbers to be released this morning.
Join the Discussion