Compiled 01/27/12 6:00 AM (CT) Statistics: London Gold Fix $1,722.00 +$9.00 LME Copper Stocks 335,425 tons -2,450 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While February gold was unable to carve out a fresh new high for the move overnight, gold prices have remained within close proximity to this week's highs. The technical trade is suggesting the gold market is overbought technically, but the fundamental crowd is holding out hope that support from the US Fed position and positive US scheduled data flows will serve to extend the recent pattern of gains in gold prices. At least in the early going today, the flow of news from the Euro zone seems to favor the bull camp, as EU officials think a Greek deal is very close at hand. However, the Euro zone has a track record of 11th hour derailments and for many traders they will embrace a Greek deal only after it is official and they in turn probably won't embrace that deal as a positive for long. Fortunately for the bull camp there looks to be generally favorable US data released this morning, but the question is whether or not the data can live up to initial expectations. Comex Gold Stocks were 11.493 million ounces down 33,808 ounces. Stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were generally stronger this morning, with the Nikkei again the only market in the region showing weakness. European equity markets were still garnering some lift from the US Fed but it also seemed as if some European gains were being forged off optimism that a Greek deal was very close to fruition. The markets also saw Italian bill yields fall to the lowest levels since last May this morning and that benefited the Euro this morning. With EU officials this morning also hinting at a Greek debt deal directly ahead and others suggesting the coming three days will be extremely critical to the Euro zone, there might be a measure of anxiety present today and that could keep some physical commodity markets off balance! The markets will also see a US 4th quarter GDP report, that is expected to show somewhat impressive growth and that report will be followed closely by a Michigan sentiment reading that the trade also thinks will show some improvement. Therefore the market seems to be getting generally positive EU news flow and there is the chance for mostly up beat economic vibes from the US report slate.
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