Compiled 11/04/11 6:00 AM (CT) Statistics: London Gold Fix $1,756.00 +23.50 LME Copper Stocks 417,850 tons -4,275 tons Shanghai Deliverable stocks were 83,868 tons +10,100 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Surprisingly the gold market didn't seem to catch a fresh bid from generally positive EU debt talk at the G20 meeting overnight. In fact, with the G20 and BRIC countries discussing the prospect of boosting global liquidity for the Euro zone through the IMF, one might have expected to see some signs of risk-on type buying of gold. However, the gold trade is somewhat conflicted with the focus of the trade this week, as a portion of the trade thinks gold is tracking physical commodity market fundamentals, while others think that gold at times this week was shifting back into a flight to quality market. It is also possible that gold is somewhat overbought technically after the low to high rally this week of roughly $88 an ounce! However, the gold market is likely to confirm its focus today, in the wake of the US Non farm payroll report or perhaps even in the wake of the latest twist in the Greece saga. In other words, seeing gold rally in the wake of positive payrolls, or in the wake of a calm progression through the Greek confidence vote, could confirm that gold is indeed tracking classic issues again. Gold has seen a series of bullish gold price forecasts overnight, from some noted analysts, with one prediction targeting $2,500 gold pricing within the coming 18 months and since the bullish vibe from the noted analysts on gold overnight seemed to be the result of safe haven type expectations, that probably leaves the flight to quality crowd hopeful. It is also possible that gold is garnering some support from the recent EU rate cut and perhaps even from potentially inflationary dialogue from the G20, which has promised to help circle the wagons for the EU through the IMF. Comex Gold Stocks were 11.213 million ounces down 160 ounces. Stocks have declined 12 of the last 20 days. Comex Gold stocks are at the lowest in the past 10 readings. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were generally higher during overnight trading, stock indices in Europe are mixed this morning. Early indications are that US equity markets will open with slight losses later on today. The US Dollar is slightly higher against most of the major currencies this morning. The G20 summit meeting will conclude today, with China agreeing to promote greater forex flexibility and Italy agreeing to IMF monitoring. The Greek Parliament will have a vote of confidence on the present government later on today. A private survey of Euro zone Service Industries during October was at 46.4, lower than market expectations. A private survey of German Service Industries during October was at 50.6, weaker than market forecasts. Major US economic numbers to be released this morning include October Non-Farm Payrolls, October Private Payrolls, and October Unemployment at 7:30 AM. In addition, Fed Governor Tarullo and Fed Regional President Williams will speak during the session.
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