Compiled 12/21/11 6:00 AM (CT) Statistics: London Gold Fix $1,637.50 +$32.50 LME Copper Stocks 371,300 tons +450 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With the February gold contract overnight rising toward the highs of December 14th and in turn regaining the 200 day moving average, it would appear that technical and fundamental conditions are initially favoring the bull camp today. In addition to positive tail winds from yesterday's global equity market gains, the gold market is also garnering some residual lift from favorable US scheduled data flows on Tuesday and perhaps even from expectations of favorable US scheduled numbers later on today. However, some would suggest that the majority of the upside action this morning is the result of the European tender, which is seen as a development that initially provided some calm in the EU debt crisis. However, a sudden reversal of market action was seen following the tender results, off ideas that EU peripheral banks were responsible for a large portion of the take down! Not surprisingly, all things EURO remains complicated and volatile and that could give pause to some would-be gold buyers. In the wake of the setback from the highs in the equity markets and the reversal action in the currency markets early today, that could make the US existing home sales figures even more important later on this morning. It goes without saying that action in US equities will be another major leading indicator for gold prices today, as the ebb and flow of equity market action is seen as an indication of optimism or anxiety from Europe. Some traders are looking closely at the 200 day moving average in February gold, which this morning sits at $1,620.40. Comex Gold Stocks were 11.431 million ounces down 193 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Asia were mostly higher again today. Stocks in Europe were also showing some noted strength to start the Wednesday trade. Early indications are that the US markets will also open with moderate gains later on today. The US Dollar was weaker against most of the major currencies to start this morning. In the overnight action, the markets saw what appeared to be a well received tender of Euro debt instruments, a slight rise in Euro zone bank deposits and generally strong global equity market action. US economic data to be released this morning includes Existing Home sales as well as a 7 Year US note auction. There will also be a weekly mortgage application survey due out early in the trading session. The trade will also see earnings from quasi cyclical companies like Bed, Bath and Beyond and Walgreen today.
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