Compiled 10/24/11 6:00 AM (CT) Statistics: London Gold Fix $1,651.00 +28.00 LME Copper Stocks 444,275 tons -3,525 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) From the overnight action it would appear that gold is benefiting from ideas that the Euro zone will be able to avoid the latest meltdown threat because of their Wednesday EFSF offering. There were reports of strong physical demand for gold from Asia overnight and that probably contributed some support to the US gold market to start the new trading week. Gold might also be drafting some minor support from action in the currency markets this morning, but the EU news appears to be the main focus of the gold trade. It is also possible that gold is garnering some support from a brokerage firm upgrade of gold prices for next year and for 2013. It is also possible that a slightly favorable Chinese PMI reading overnight has provided gold and other physical commodity markets with a lift this morning, as growth in China typically results in improved physical commodity demand views. Comex Gold Stocks were 11.249 million ounces up 1,700 ounces. Stocks have declined 12 of the last 20 days. Comex Gold stocks are at their highest levels in the past 10. The Commitments of Traders Futures and Options report as of October 18th for Gold showed Non-Commercial traders were net long 159,985 contracts, a decrease of 8,037 contracts. The Commercial traders were net short 194,168 contracts, for a decrease of 9,811 contracts on the week. The Non-reportable traders were net long 34,182 contracts, a decrease of 1,775 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 194,167 contracts. This represents a decrease of 9,812 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were generally higher during overnight trading, stock indices in Europe were mixed this morning. Early indications are that US equity markets will open slightly higher later on today. The US Dollar is near unchanged levels against most of the major currencies this morning. The Japanese Trade surplus during September was 300.4 billion Yen, higher than market expectations. A private survey of Euro Zone manufacturing during October was at 47.3, lower than forecasts. A private survey of German manufacturing during October was at 48.9, lower than some projections. Euro zone Industrial New Orders during August were up 1.9%, higher than expectations. The only major US economic number released this morning, will be the Chicago Fed's National Activity Index at 9:00 AM. In addition, there will be two Regional Fed speeches during today's session.
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