Compiled 02/22/12 6:00 AM (CT) Statistics: London Gold Fix $1,754.75 +$17.75 LME Copper Stocks 305,725 tons +300 tons Shanghai Deliverable stocks were 217,142 tons +18,940 GOLD MARKET FUNDAMENTALS: (6:00 AM CST) From last week's lows to the highs this morning, April gold forged a rather impressive $54 an ounce rally and that in turn might have left the market short term overbought. While concern toward the Euro zone economy was fostered again overnight in the wake of news of a softening of the Euro zone service sector, fears of a full blown financial contagion have generally remained in check. Clearly the gold market was lifted in part by news of fresh easing from the Chinese yesterday and it is also possible that gold saw some minor support this morning from news that the BOE might have eased even further, but the BOE feared aggressive action might foster anxiety toward the economy. Gold probably saw some minor support from favorable longer term gold import dialogue from Indian officials overnight and gold might also have benefited from favorable gold price forecasts from a major US investment banking firm. However, at the start of the Wednesday US trade, the gold market might be facing slightly adverse currency market action and a choppy track in global equities and that in turn might prompt some gold longs to bank profits from the recent surge in gold prices. On the other hand, gold might see some support from a US home sales report and gold might also see some lift off the unveiling of a US corporate tax reform plan. Comex Gold Stocks were 11.432 million ounces up 460 ounces. Stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were generally higher overnight, as Chinese developers continued to garner some lift from the recent change in policy at the PBOC. However, European equity markets were weaker off some soft PMI data and renewed talk of slowing/recession in the Euro zone. The US equity markets are showing a mixed early track today, as those markets brace from a corporate tax reform plan and a National Association of Realtors home sales reading.
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