Compiled 11/18/11 6:00 AM (CT) Statistics: London Gold Fix $1,730.00 -26.00 LME Copper Stocks 398,250 tons -1,375 tons Shanghai Deliverable stocks were 74,199 tons -9,190 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With a slight improvement in US economic vibes, a weaker dollar and a pause in concerning Euro zone headlines over the last 12 hours, the gold market has managed to bounce. Some traders might suggest that the rise overnight was largely short covering, while others think that evidence of ongoing growth in the US economy could actually serve to cushion the world economy against the Euro zone situation. However, few economists and or world leaders think the world will avoid slowing in the event that Euro zone turmoil continues to drag into the future. It also seems as if calls for a quick enactment of the EFSF and fresh bond buying in the EU, is providing gold with some of its initial lift this morning. Nonetheless, seeing higher equities and a lower dollar to start today has provided the gold bulls with a bit of an early edge, but to maintain that track might require a positive US leading indicator reading and a positive US equity market opening. Gold might have been partially undermined by talk of weak physical demand from a brokerage firm overnight, but after the rather supportive demand projections from the World Gold Council earlier this week, some traders think that yesterday's lows should be given some added credence. The gold market did see a slight rise in gold held in a key gold derivative instrument's holdings yesterday afternoon and that might be seen as another minor positive for the gold bulls to start the last trading day of the week. Some bulls might be holding out hope that a series of US Fed speeches during the session today could provide gold with some added support but after a positive flow of scheduled US data this week, the Fed might not be as vocal on the need for additional easing today. Comex Gold Stocks were 11.235 million ounces down 1,607 ounces. Gold stocks have declined in 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were generally lower during overnight trading, stock indices in Europe are mixed to slightly lower this morning. Early indications are that US equity markets will open with moderate gains later on today. The US Dollar is weaker against most of the major currencies this morning. The new head of the European Central Bank urged Euro zone governments to start their European Financial Stability Facility quickly. German PPI during October was up 5.3% year-on-year, in line with expectations. The only major US economic number to be released this morning will be a private survey of Leading Indicators at 9:00 AM. In addition, Fed Regional Presidents Dudley and Fisher will speak during the session.
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