Compiled 10/20/11 6:00 AM (CT) Statistics: London Gold Fix $1,629.00 -22.00 LME Copper Stocks 450,850 tons -1,325 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market forged a noted range down move overnight and that action would seem to be the result of dual fears of more global slowing off the Euro zone situation and perhaps because of fears of a rising US dollar. At least recently, the focus of the gold trade has been difficult to isolate, as the gold market seems to have broken away from many outside market influences. News of record profits at African Barrick overnight might be seen as a negative, but recently gold hasn't paid that much attention to the potential ebb and flow of physical supply levels. It does seem as if gold is fearful of a further break down in the Euro zone EFSF negotiations and that would seem to suggest that gold is still largely attempting to track its physical commodity market fundamentals. After a long string of strong monthly US gold coin sales readings, talk that coin sales for October might be slowing a touch, should be seen as a little surprising considering that December gold this morning enters the US trade sitting roughly $300 an ounce below the September highs. In other words, instead of seeing gold coins as a bargain, some coin buyers seem to be put off by the fear that gold prices might continue to slide lower. In the end, the gold bulls seem to need positive macro economic developments to avoid even lower gold prices ahead and it would also seem like the gold bulls need favorable EFSF news from Europe. In other words, without surprisingly strong US data today, the US data might not be capable of pushing up gold prices sharply. Comex Gold Stocks were 11.248 million ounces down 353. Stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally weaker during overnight trading, early indications are that US equity markets will open with moderate gains later on today. The US Dollar is generally weaker against most of the major currencies this morning, although posting a small gain versus the Pound. Fed Governor Lockhart stated that the largest threat to the US economy comes from the current Euro zone debt problem. The Governor of the Bank of Japan said his nation's economy continues to pick up but global economic growth is slowing. German PPI during September was up 5.5% year-on-year, roughly in-line with market forecasts. UK Retail Sales during September were up 0.6%, higher than market expectations. Major US economic numbers to be released this morning include Weekly Jobless Claims at 7:30 AM, and the Philadelphia Fed business conditions index, a private survey of Existing Home Sales during September and a private survey of Leading Indicators during September at 9:00 AM. In addition, Fed Regional Presidents Bullard, Lockhart and Pianalto will give speeches during the session today.
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