Compiled 11/25/11 6:00 AM (CT) Statistics: London Gold Fix $1,676.00 -$10.00 LME Copper Stocks 394,725 tons -1,250 tons Shanghai Deliverable stocks were 65,205 tons -8,994 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With Italian government debt auctions this morning posting some fresh Euro era highs, lower equities and weakness in a host of physical commodity markets, it is not surprising to see gold start the Friday US trade out on a softer footing. In fact, fear of slowing in China and a credit rating agency downgrade of a Chinese industrial commodity sector company overnight would seem to leave the fear of a global recession in play. Somewhat surprising is the fact that gold wasn't able to benefit from news Wednesday of increased central bank buying of gold and it would also appear that even more talk of central bank gold buying overnight was also discounted. Gold is probably seeing some minor pressure from adverse currency market action but it is possible that optimistic anecdotal coverage of the US holiday shopping season kick off could provide an offset to the mostly negative Euro zone story line. The US economic report slate today is empty and that probably leaves the focus on the Euro zone story and perhaps that could make the action in European equities even more important into their closes later this morning. With a noted analyst indicating that gold looked to remain off balance and many traders thinking gold is set to track its physical commodity market fundamentals, the bear camp might feel like they have initial control today. The bulls have to hope that Black Friday news manages to alter the initially negative Euro zone bias. Comex Gold Stocks were 11.230 million ounces down 8,449 ounces. Gold stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally lower this morning. Early indications are that US equity markets will open with moderate losses later on today. The US Dollar is stronger against most of the major currencies this morning. Chancellor Merkel of Germany stated that Eurobonds would send the completely wrong signal to the markets. Major credit rating agencies have downgraded the sovereign debt of Portugal and Hungary to junk status. German GDP during the third quarter was up 0.5%, in-line with expectations. A private survey of German business sentiment was 106.6, higher than projections. Japanese CPI during October was down 0.1% year-on-year, in line with market forecasts. French Consumer Confidence during November was 79, lower than market expectations. There are no major US economic numbers to be released this morning.