Compiled 12/02/11 6:00 AM (CT) Statistics: London Gold Fix $1,751.00 +$1.00 LME Copper Stocks 388,150 tons +1,450 Shanghai Deliverable stocks were 57,655 tons -7,550 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With global equity markets initially higher, Euro zone news overnight relatively calm and expectations for positive growth news from the US, the gold market is seeing a mostly favorable physical commodity market environment to start today. While some might suggest that the markets are expecting a somewhat high bar reading for the payroll report this morning, there are some economists expecting a non farm payroll gain significantly above the 115,000 to 125,000 range and that would probably provide the gold market with an added lift. Gold might have been somewhat undermined by news overnight of a slight waning of seasonal demand in India, but in the short term, big picture macro-economic views are likely to dominate over regional gold demand news stories. In short, the gold market will probably focus on the US payroll data for the initial morning trade today but unless the numbers are strong it is possible that the afternoon trade might focus on the potential weekend developments from meetings between key Euro leaders. Comex Gold Stocks were 11.299 million ounces down 242 ounces. Stocks have declined 12 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 higher this morning. Early indications are that US equity markets will open with sizable gains later on today. The US Dollar is moderately weaker against most of the major currencies this morning, though it posting a small gain versus the Yen. French President Sarkozy called for a new EU Treaty to include tougher budget rules and creating a new European Monetary Fund. German Chancellor Merkel stated that resolving the EU sovereign debt crisis is a process that will take years to complete. Euro zone PPI during October was up 5.5% year-on-year, in line with expectations. A private survey of UK Construction during November was at 52.3, slightly above forecasts. Major US economic numbers to be released this morning include November Non-farm Payrolls, November Private Payrolls and the November Unemployment Rate at 7:30 AM, In addition, Fed Regional Presidents Fisher, Plosser and Rosengren will speak during the session.
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