Compiled 01/30/12 6:00 AM (CT) Statistics: London Gold Fix $1,720.50 -$1.50 LME Copper Stocks 333,125 tons -2,300 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Despite starting out on a weaker footing this morning in gold early on, gold prices might have seen some support from weekend press coverage, which touted gold as a possible benefactor of an extended period of low US rates. However, from a shorter term focus, the gold market is initially facing a weaker Euro, weaker global equity markets and a small measure of macro economic slowing fears which were apparently stoked in the wake of last week's US 4th quarter GDP release. On the other hand, some gold bulls might expect to see a measure of support today if US Personal Income figures this morning manage to rise by +.4%, as that type of result could foster some positive headlines. However, some gold players were disappointed in the lack of easing from the PBOC over their recent long holiday period. Other traders think the lack of forward movement on Greek debt talks could stall planned changes by the EU directly ahead and therefore the focus on Greece might be expected to escalate in the days ahead. Comex Gold Stocks were 11.525 million ounces up 31,710 ounces. Stocks have declined 12 of the last 20 days. The Commitments of Traders Futures and Options report as of January 24th for Gold showed Non-Commercial traders were net long 155,027 contracts, an increase of 9,019 contracts. The Commercial traders were net short 193,289 contracts, an increase of 9,354 contracts. The Non-reportable traders were net long 38,263 contracts, an increase of 336 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 193,290 contracts. This represents an increase of 9,355 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were weaker this morning, as traders and investors in that region were apparently disappointed with the lack of a cut in the Chinese reserve rate requirement. European equity markets were also weaker in the face of a lack of definitive forward movement on the Greek debt talks and perhaps because of a lack of confidence in the coming EU summit. Somewhat surprisingly, European markets didn't see much benefit from news that Italian auction yields fell from prior auction levels this morning perhaps because of the lingering uncertainty over the EU summit. Euro zone consumer confidence levels improved slightly overnight, but those figures remained in negative territory. The markets will see a US Chicago Fed Midwest Manufacturing report, Personal Income, Personal Spending and a Texas manufacturing report in the morning trade today, but some in the trade might already be looking ahead to the week ending US monthly non farm payroll report for most of their macro economic guidance.
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