Compiled 02/27/12 6:00 AM (CT) Statistics: London Gold Fix $1,765.00 -$12.50 LME Copper Stocks 300,475 tons -3,025 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With a noted range down probe in the early action today, it is clear that gold is facing a number of potential negatives. In addition to adverse currency market action, the markets are somewhat fearful of global slowing off ultra high oil prices. However, oil prices have started off under pressure today and that would seem to temper some of the slowing fears that were tossed around in the Asian trade. The gold market probably wasn't sure how to take news of January changes in IMF gold holdings, as Mexico and Tajikistan reduced gold holdings, while Belarus, Kazakhstan, Sweden and Turkey increased their holdings. The gold market might see news that Venezuela will develop some gold mining assets with China as a negative, but that should have been offset by comments from a major gold fund manager, that his gold fund performance would probably outperform his other investments over the coming 5 years. In general, it seems that gold has remained a physical commodity market which needs more definitive growth evidence and that could make the US Pending home sales report this morning, the key event of the Monday US gold trading session. Comex Gold Stocks were 11.432 million ounces up 6,571 ounces. Stocks have declined 12 of the last 20 days. The Commitments of Traders Futures and Options report as of February 21st for Gold showed Non-Commercial traders were net long 201,637 contracts, an increase of 17,836 contracts. The Commercial traders were net short 251,107 contracts, an increase of 23,548 contracts. The Non-reportable traders were net long 49,470 contracts, an increase of 5,712 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 251,107 contracts. This represents an increase of 23,548 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were mixed overnight, with Hong Kong shares lower and Shanghai shares reaching the highest level since the middle of last November. Japanese stocks started off higher off ongoing relief from ultra high currency exchange rates. European equity markets started off weaker as fears of slowing off high oil prices was a wide spread theme overnight. However, the fear of slowing off soaring oil prices was partially countervailed by decent auction results for Italian bills. One might have expected the Euro to have seen some support from news that the G20 had lined up a $2 Trillion rescue fund! In looking ahead to the US trade today, the markets will be bracing for a US Pending home sales report, which is expected to post a minimal rise and that will be followed by a Dallas Fed Manufacturing Index. Later in the trading session the market will also see some revisions on January US building permits data and that could be an important release at the start of a new trading week.
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