Compiled 12/28/11 6:00 AM (CT) Statistics: London Gold Fix $1,584.00 -$23.50 LME Copper Stocks 372,525 tons -675 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The bull camp can't seem to catch a break as a favorable Italian short term auction hasn't inspired fresh gold buying overnight. In other words, gold initially seems to have missed an opportunity to embrace something positive from Europe. From the overnight action it would also seem that the gold trade is embracing a slight fear of slowing again, which in turn might have been partially inspired by weak data from the Japanese METI. In retrospect, the gold market is probably seeing some pressure from the somewhat disappointing flow of US scheduled data yesterday, but there are also some traders who think that a long term Italian debt auction later this week could still serve to trip up European psychology. It would not seem like supportive currency market action is being given that much credence this morning, as February gold has initially forged a fresh new low for the move and the lowest trade since December 16th. The gold market probably won't see much of a reaction to the scheduled data flow, as the only data due out today come from private weekly chain store sales figures. Some gold bulls have to be disappointed in gold's inability to benefit from the recent rise in anxiety off the Iranian threat to restrict oil flow in the wake of any further UN sanctions. Therefore, gold and some physical commodity markets don't appear to be overly concerned about an actual halt of oil shipments, but the markets do think that oil prices could rise enough, off the Iranian threat, to add to the already existing drag on the global economy. In short, a successful short term Italian debt auction was discounted and fears of slowing were allowed to remain in place. Comex Gold Stocks were 11.279 million ounces down 3,504 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Asia were generally weaker overnight. European stocks were weaker and the US equity markets appeared to be poised to open only marginally higher today. A shorter term Italian debt auction went off with yields coming in at half the level seen in the prior auction and that for the time being appears to have tamped down concerns toward the Euro zone debt crisis. However, Japanese data released overnight from the METI generally confirmed the ongoing threat of deflation in Japan. The US Dollar was marginally weaker against most of the major currencies. The scheduled data flow from the US today is rather light with a couple private weekly chain store sales reports to be released early in the session.