Compiled 12/07/11 6:00 AM (CT) Statistics: London Gold Fix $1,731.00 +$11.00 LME Copper Stocks 389,450 tons -650 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) At least to start this morning, the gold market would seem to be presented with a slight risk-on environment. However, the risk-on vibe isn't overly definitive as the dollar was at times higher and many physical commodity markets were trading weaker. Perhaps the gold bulls were a little discouraged by German comments overnight, suggesting some increased pessimism that a strong deal will be ultimately reached. In fact, the press is reporting comments from a senior German official overnight that his country isn't in favor of an inter-governmental solution to the EU crisis and his country also isn't necessarily in agreement on the need for a complete recapitalization of all European banks. There did seem to be some hope in Asia overnight that the ECB was poised to cut interest rates and that most European leaders were aware of the seriousness of the current crisis. However, comments overnight from Europe that not all EU members realize the magnitude of the current threat, could mean that some will remain content to kick the can down the road again later this week. In the end, it would seem like gold is set to remain a classic physical commodity market in need of a strong EU resolution and that could mean gold will at times track in sync with the US equity markets. Comex Gold Stocks were 11.299 million ounces down 643 ounces. Stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally stronger during overnight trading, early indications are that the US markets will open with moderate gains today. The US Dollar is slightly weaker against most of the major currencies this morning. Australian GDP during the third quarter was up 1.0, in line with forecasts. UK Industrial Production during October was down 0.7%, lower than expectations. The only major US economic number to be released this morning will October Consumer Credit at 2:00 PM, as well as a private survey of mortgage applications released before the Wednesday opening. In addition, Fed Governor Raskin will moderate a panel discussion during the session.
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