Compiled 12/15/11 6:00 AM (CT) Statistics: London Gold Fix $1,590.00 -$45.00 LME Copper Stocks 382,075 tons -75 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While Euro zone fears generally remained in place throughout the overnight news coverage, gold has managed what many are suggesting is a simple short covering bounce. In addition to an ongoing fear that the Euro zone is poised to drag the world back into a recession, gold is also being undermined by a series of pile-on type bearish gold price projections from various analysts and talking media heads. Given the weakness in a long list of physical commodity prices recently, it goes without saying that sentiment in the gold market is growing more fearful of deflation and at the same time, the gold trade is starting to fear even slower global growth ahead. Therefore, the gold market might be set to see some reaction to a somewhat flush flow of US scheduled data today, but it could take a string of stronger than expected data points, to effectively tamp down the slowing vibe that has been ushered into place this week. In conclusion, gold is another market that has developed a Euro centric focus and it could be difficult to break that link. Comex Gold Stocks were 11.296 million ounces up 2,945 ounces. Gold stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Some equity markets in Asia were lower for the eighth straight session overnight. Stocks in Europe showed some minor strength to start the Thursday trade. Early indications are that the US markets will open with minimal gains later on today. The US Dollar was slightly weaker against most of the major currencies to start this morning but it was making some minor gains versus the Aussie. In the overnight action, the markets saw signs that the UK economy continues to weaken, with November UK retail sales coming in softer than most expectations. The Euro zone posted declining inflation and declining employment figures. The Euro zone also posted lower December services PMI readings overnight, but those figures weren't as bad as some expectations. Major US economic data to be released this morning, includes initial and ongoing claims, an Empire state manufacturing report, Industrial production & capacity Utilization and a Philly Fed Business outlook survey. The US Treasury will float some T-Bills and some 5 Year TIPS today. The market will also see another speech from the Atlanta Fed President today.
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