Compiled 11/29/11 6:00 AM (CT) Statistics: London Gold Fix $1,717.00 +$3.00 LME Copper Stocks 390,525 tons -2,250 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) At least to start today the news flow from the Euro zone has remained positive, with auction results this morning floating necessary debt supply and yields on those instruments apparently not high enough to rekindle anxiety. There are some traders that are hopeful of fresh rules for leveraging the EFSF today, while others simply hope that the next layer of support for Greece will be confirmed from the EU summit. Since the gold trade seems to be focused on the prospect of improved gold demand in the event that the EU manages to hold together, the gold market might not be undermined by news of an increase in gold production from Russia overnight, which managed to rise by more than 5% in the first ten months of this year. Perhaps predictions that Chinese gold demand will make that country the world's largest gold consumer next year, is countervailing the news of higher supply from Russia. However, gold has recently settled into a physical commodity market focus and that in turn means the bull camp probably needs a risk on environment to consistently control prices. With a risk on vibe in place to start today and the markets seemingly accepting the Euro zone debt auctions news without renewed anxiety, the bull camp might be able to get beyond the European trade hours with a slight edge. However, there is an EU summit in session and the trade generally thinks late breaking statements from that meeting will contribute to the risk on tilt. On the other hand, seeing the Germans rail against a Euro bond issue or serious conflict on leveraging the EFSF could alter the initial bias in financial markets quickly. In the US trade today, the market could see countervailing scheduled data points, with the market potentially seeing the rise in Consumer Confidence, as a simple extension of the favorable holiday shopping season kick off, while weakness in home prices might suggest that trouble continues in the US housing sector. There will also be a series of Fed Speeches today and traders will be on the look out for hints at more QE from the US Fed. Comex Gold Stocks were unchanged at 11.235 million ounces. Stocks have declined 12 of the last 20 days. The Commitments of Traders Futures and Options report as of November 22nd for Gold showed Non-Commercial traders were net long 178,800 contracts, a decrease of 24,998 contracts. The Commercial traders were net short 211,818 contracts, a decrease of 38,389 contracts. The Non-reportable traders were net long 33,017 contracts, a decrease of 13,392 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 211,817 contracts. This represents a decrease of 38,390 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally higher during overnight trading, early indications are that US equity markets will open with sizable gains later on today. The US Dollar is weaker against most of the major currencies this morning. Euro zone finance ministers will meet today to agree on how to leverage their emergency bailout fund and to approve their next aid tranche for Greece. A major credit rating agency warned that the US would receive a rating downgrade if there was no credible plan to lower the budget deficit by 2013. Japanese Unemployment during October was 4.5%, higher than expectations. Japanese Retail Sales during October was up 1.9% year-on-year, higher than forecasts. Euro zone Economic Sentiment during November was 93.7, slightly below expectations. Major US economic numbers to be released this morning include a private survey of Home Prices during October at 8:00 AM, a private survey of Consumer Confidence at during November at 9:00 AM, and a private survey of store sales will also be released during the session today. In addition, Fed Vice Chair Yellen and Fed Regional Presidents Kocherlakota and Lockhart will speak during the session.