Compiled 10/25/11 6:00 AM (CT) Statistics: London Gold Fix $1,656.25 +5.25 LME Copper Stocks 439,150 tons -5,125 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Like a number of outside markets, gold seems to be anticipating an EFSF fund decision that will tamp down the contagion threat from the Euro zone. While the gold market could have been undermined by indications overnight of ongoing debate on the magnitude of the haircuts for banks holding Greek debt, the trade didn't seem to think that issue was going to derail progress toward a favorable summit announcement on Wednesday. Gold did see positive dialogue on gold as an investment, from a major fund manager and that probably combined with a generally up beat macro economic view, to lift gold prices this morning above the prior session's high. In addition to favorable fund manager dialogue overnight, the gold trade might also have been lifted by rather bullish gold price targets from the AngloGold CEO. While the looming summit could keep some players on the sidelines, it is possible that a series of slightly improved scheduled US data points today could benefit the bull camp in gold, as gold seems to be behaving like a physical commodity market in need of an improving economy. However, in the event that the haircut issue on Greek debt holdings presents a major conflict within the EU, that could prompt a sudden liquidation in gold and therefore gold traders need to keep a close watch on the headline flow from Europe today. Comex Gold Stocks were 11.248 million ounces down 257 ounces. Gold stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were mixed during overnight trading, 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. A private survey of German Consumer Sentiment during late October was at 5.3, higher than market expectations. A measure of French Consumer Confidence during October was at 82, higher than forecasts. The first leg of the Treasury's refunding, the 2-Year Note auction, will have results announced at 12:00 PM. Major US economic numbers to released this morning include a private survey of the US Housing market at 8:00 AM, and a private survey of US Consumer Confidence at 9:00 AM, and private surveys of store sales released during the session.
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