Compiled 01/03/12 6:00 AM (CT) Statistics: London Gold Fix $1,590.00 +$15.50 LME Copper Stocks 371,575 tons +675 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market has shown some positive action to start, as the trade is generally hopeful that optimism might be able to remain in place. One also gets the sense that gold prices are also garnering some indirect support from concern that Iran and the US might be set to tangle in the future, as rhetoric between the two players remains incendiary and talking heads and economists have not been shy in their lofty predictions of where oil prices might be headed in the event that Iran actually attempts to block key shipping lanes. At least to start today, there would appear to be a risk on vibe and there is also favorable currency market action to boost the resolve of the bull camp. Given the initial rise today in February gold to the highest level since December 27th, it is also possible that gold is seeing some technically related buying. The 200 day moving average in February gold is seen today up at $1,626.20, but many see initial pivot point action at the even number $1,600 level on the charts. The Commitments of Traders Futures and Options report as of December 27th for Gold showed Non-Commercial traders were net long 135,907 contracts, a decrease of 4,997 contracts. The Commercial traders were net short 169,566 contracts, a decrease of 3,993 contracts. The Non-reportable traders were net long 33,660 contracts, an increase of 1,005 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 169,567 contracts. This represents a decrease of 3,992 contracts in the net long position held by these traders. Comex Gold Stocks were 11.354 million ounces down 39,414 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Asia were stronger overnight, with European stocks also showing some noted gains to start. The US equity markets were also showing positive action to start the new holiday shortened trading week. The US Dollar has started lower and is now weaker against most of the major currencies going into this morning's US trading. In addition to favorable Chinese PMI services data overnight, the markets also saw an improvement in German unemployment readings and talk that China might be poised to drift away from a tightening stance in the face of 2012 slowing evidence. Scheduled data flow from the US today will bring forth Construction Spending and an ISM manufacturing report, both of which are expected to show positive progression. Later in the trade today, the markets will be presented with FOMC meeting minutes and that news could influence the late afternoon action in metals.