Compiled 12/19/11 6:00 AM (CT) Statistics: London Gold Fix $1,593.00 +$3.50 LME Copper Stocks 373,950 tons -7,300 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) It wasn't surprising to see some initial pressure from news of the death of the North Korean leader over the weekend as gold recently has come under pressure from events that could add to the prospect of a return to global recession. It is also possible that gold was also lifted in the wake of a slightly upbeat tilt toward the Euro zone situation, as there are hopes that the IMF is poised to make bi-lateral loans to EU members. It is also possible that gold and other physical commodity markets are still drafting support off news from last week of Non EU members pledging fresh capital to the IMF. Gold was at least partially undermined overnight by news of a Fitch downgrade warning for France and potentially six other countries. It is also possible that gold was at least partially undermined by talk of slack Indian gold demand. In looking forward the gold bulls probably need to see positive equity market action and ongoing positive dialogue from the Euro zone situation just to sustain a recent developing pattern of higher highs on the daily charts. Today's US economic scheduled data doesn't look to be particularly beneficial to the bull camp in gold, as the trade expects an unchanged to slightly weaker result for the National Association of home builders housing index. Comex Gold Stocks were 11.390 million ounces up 53,604 ounces. Comex Gold stocks are at their highest levels in the past 10 sessions. The Commitments of Traders Futures and Options report as of December 13th for Gold showed Non-Commercial traders were net long 163,169 contracts, a decrease of 19,298 contracts. The Commercial traders were net short 200,143 contracts, a decrease of 25,743 contracts. The Non-reportable traders were net long 36,975 contracts, a decrease of 6,444 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 200,144 contracts. This represents a decrease of 25,742 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Asia were mixed today, with the North Korea news undermining some markets. Stocks in Europe showed some minor strength to start the Monday trade. Early indications are that the US markets will open with modest gains later on today. The US Dollar was slightly weaker against most of the major currencies to start this morning, but it was initially stronger in the wake of the death of the North Korean leader. In the overnight action, the markets saw signs a Euro zone current account deficit reading and suggestions from the Bundesbank, that the US wasn't likely to increase its stake in the IMF. US economic data to be released this morning is limited to a National Association of Home Builders housing market index, which is expected to show a minimal decline or an unchanged reading. The market will also see commentary later today from the Fed's Lacker, who is the Richmond Fed President.
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