Compiled 01/09/12 6:00 AM (CT) Statistics: London Gold Fix $1,618.00 -$3.00 LME Copper Stocks 366,900 tons -1,225 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market has started out by waffling around both sides of unchanged in the early Monday US trade. While there seems to be generally positive attitudes toward the US economy, the same can't be said of the Euro zone economic outlook. In fact, a number of markets are looking ahead toward this week's Euro zone debt supply flow with trepidation and that might be a factor that periodically undermines gold and other physical commodity markets. Unfortunately the gold market didn't seem to get much in the way of fresh buying support off favorable US economic data last week, but it is possible that gold might be destined to get some support from a flurry of Fed speeches ahead. At the end of last week, the Fed hinted at more support for the US economy, as the Fed is apparently unmoved by recent US growth perhaps because of the lingering Euro zone threat. One might have expected gold to have garnered some support from talk overnight that Chinese officials might be poised to increase lending to small entrepreneurs, as that action would seem to further talk that the PBOC is indeed moving away from a hawkish stance. Comex Gold Stocks were 11.493 million ounces down 773 ounces. The Commitments of Traders Futures and Options report as of January 3rd for Gold showed Non-Commercial traders were net long 135,786 contracts, a decrease of 121 contracts. The Commercial traders were net short 167,776 contracts, a decrease of 1,790 contracts. The Non-reportable traders were net long 31,990 contracts, a decrease of 1,670 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 167,776 contracts. This represents a decrease of 1,791 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Shanghai were strong overnight and that action helped Hong Kong shares to throw off some early weakness. Indian stocks were slightly weaker overnight, while European stocks this morning were unable to show much in the way of definitive direction. In early action today, US equity markets were simply waffling around both sides of unchanged early in the Monday US trading session. The US Dollar has started out weaker against the euro, but it was showing some gains versus the Canadian and Aussie Dollar. Overnight the markets saw generally favorable Euro zone economic readings in the form of strong German export figures, but the market also saw a German auction that effectively resulted in the German government being the benefactor of negative inflation adjusted yields. In looking ahead, the markets will see a US Employment trends index, a Fed speech and US Consumer Credit readings. There is also a German/French meeting underway to discuss normalizing Euro zone fiscal rules.
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