Compiled 01/11/12 6:00 AM (CT) Statistics: London Gold Fix $1,641.00 +$14.00 LME Copper Stocks 365,375 tons -1,525 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market has developed into a positive track on the charts this week and with a fresh new high for the move again overnight, some traders are eyeing the next level on the charts up at $1,650 in the February gold contract. Gold probably saw some lift from news of sharply increased physical gold flow from Hong Kong into mainland China, as that in turn fosters talk of improving Chinese gold demand. The rise above of the 200 day moving average on the opening yesterday, has given the bull camp some added technical resolve and that level of $1,631.60 could be seen as an important point in the session today. Many analysts are unsure what the primary focus of the gold market is this week, as the trade at times seemed to be embracing a risk-on track, but at time geopolitical anxiety from the Middle East seemed to be a key market factor. It is also possible that dovish US Fed talk, in the face of decent US economic progression, has served to rekindle some inflation views but that might not be a widespread notion in the marketplace. There were press reports of improved Asian demand for gold overnight and that would seem to follow general optimism toward physical commodities yesterday in the US. Comex Gold Stocks were 11.460 million ounces down 699 ounces. Gold stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Asia were mixed overnight with Hong Kong up and the Shanghai market mostly choppy. European markets followed through with a fresh 5 month high initially but gave back some of those gains as the session progressed. The US equity markets look poised to start out mixed to slightly weaker. The US Dollar has started out stronger against the euro, but it might show some minor weakness today versus the Canadian and the Aussie Dollar. Overnight the markets saw evidence that the Euro zone crisis was weighing on the German economy and the markets were also presented with a more definitive view on who might become the GOP candidate for President. Ongoing violence in Iran was seen overnight, with reports of a bombing that killed an Iranian nuclear scientist and that supposedly resulted in Iran pointing a finger toward Israel and for some, that might serve to increase geopolitical anxiety in the marketplace. In looking ahead, the markets will see another US debt auction today, several Fed speeches and the release of the Fed Beige book and the trade probably thinks those events will generally provide support for the metals complex.
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