Compiled 10/14/11 6:00 AM (CT) Statistics: London Gold Fix $1,676.00 +$20.00 LME Copper Stocks 450,200 tons -2,900 Shanghai Deliverable tocks were 99,661 tons +1,750 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Gold is apparently seeing renewed investor interest after the steep declines last month. There are some reports that gold ETF holdings have increased 8.7 metric tonnes this week following a decline of 17 metric tonnes last month. Central Bank buying has also been noted. It seems that once panic over the EU debt crisis subsides and the leaders of Europe start to discuss ways to deal with it, any solution, be it haircuts on Greek bonds and/or bank recapitalization, likely means liquidity injections that would ultimately prove inflationary. This enhances gold's attractiveness as a safe haven for the long-run. Today's report that a major ratings agency has downgraded Spain's debt slightly seems to have been met with a shrug, possibly because so much bad news has been absorbed by the market already, including suggestions that banks may have to accept as much as a 60% haircut on Greek bonds. Cash gold prices in India were somewhat higher overnight. They have been choppy this week, but demand is expected to pick up later this month with the approach of two festivals and the wedding season. A major international bank has noted that cash sales in India are up 10% so far this year. Comex Gold Stocks were 11.117 million ounces down 836. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Early indications are that US equity markets will open with moderate gains today. The US Dollar is slightly weaker against most of the major currencies, although posting a gain versus the Yen. A major credit rating agency downgraded the sovereign debt of Spain with a negative outlook. G20 Finance Ministers will have a 2-day meeting in Paris starting today. Japanese Corporate Goods were up 2.5% year-on-year, in line with expectations. Chinese CPI during September was up 6.1% year-on-year, in line with forecasts. Chinese PPI during September was up 6.5% year-on-year, lower than market projections. Euro zone Inflation during September was up 3.0% year-on-year, in line with market expectations. Major US economic numbers to be released this morning include September Retail Sales and September Import & Export Prices at 7:30 AM, a private survey of US Consumer Sentiment at 8:55 AM, and August Business Inventories at 9:00 AM.
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