Compiled 12/05/11 6:00 AM (CT) Statistics: London Gold Fix $1,744.00 -$6.00 LME Copper Stocks 389,500 tons +1,350 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market starts on a slightly weaker track this morning and that is somewhat discouraging to the bull camp, especially in the face of higher equity market action. In other words, a slight risk on environment hasn't resulted in initial gains in the gold market. Perhaps the gold market is looking ahead to the news following a meeting between French and German leaders later today. The gold trade overnight was tossing around the idea that gold wasn't seeing much in the way of physical buying and that news was joined by talk that Indian seasonal gold demand might have been undermined by price pressures. In fact, with reports that Indian November gold imports might have declined by as much as 20 tons, the talk of soft demand was given added credence overnight. In the end, a softer start in the face of higher equities, a weaker dollar and initial gains in silver prices, suggests that gold needs to see something even more positive from the Euro zone lunch meeting between the French and Germans to right the ship. Comex Gold Stocks were unchanged at 11.299 million ounces. Gold stocks have declined in 11 of the last 20 days. The Commitments of Traders Futures and Options report as of November 29th for Gold showed Non-Commercial traders were net long 174,328 contracts, a decrease of 4,472 contracts. The Commercial traders were net short 214,408 contracts, an increase of 2,590 contracts. The Non-reportable traders were net long 40,080 contracts, an increase of 7,063 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 214,408 contracts. This represents an increase of 2,591 contracts in the net long position held by these traders. 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 moderate gains later on today. The US Dollar is moderately weaker against most of the major currencies this morning. German Chancellor Merkel and French President Sarkozy will meet today to discuss ideas for EU fiscal integration. The Italian government announced 30 billion Euros of new austerity measures over the weekend. Euro zone Retail Sales during October were up 0.4%, higher than projections. A private survey of Euro zone service industries during November was at 47.0, slightly lower than expectations. A private survey of German service industries during November was at 50.3, lower than forecasts. Major US economic numbers to be released this morning include October Factory Orders and a private survey of non-Manufacturing industries at 9:00 AM. In addition, Fed Regional President Evans will speak during the session.