Compiled 03/01/12 6:00 AM (CT) Statistics: London Gold Fix $1,721.00 -$67.00 LME Copper Stocks 292,250 tons -4,175 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) After some rather surprising volatility in gold prices yesterday, the gold market is showing some modest recovery action on the charts. Gold is drafting some support from mostly upbeat macro economic vibes and perhaps the market is garnering some lift from news of central bank gold buying overnight. Apparently the press was picking up on news that the Kazakh Central bank had contracted with a UK miner for a 69,000 ounce gold purchase for the 1st quarter of 2012. Some traders expected gold to remain under pressure today after the US Fed Chairman yesterday failed to hint at additional quantitative easing efforts. In fact comments from the Fed's Plosser yesterday that inflation was likely to remain below 2% could be another factor that serves to limit gold prices in the short term. Therefore, the gold bulls probably need something positive from the scheduled US data but that might not be forth coming from the US initial claims readings. However, Personal Spending and Personal Income figures are likely to cushion the gold market against the claims readings. In the event that the claims surprise the trade with a decline instead of the expected rise, that could provide gold with a fresh risk on vibe from the US economic front. Comex Gold Stocks were 11.427 million ounces down 160 ounces. Stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were weaker overnight with those markets disappointed in the dialogue from the US Federal Reserve Chairman on Wednesday. European equity markets were higher in the wake of supportive corporate earnings news from some large cap stocks. Early US equity market action was mixed and wasn't offering up much in the way of direction. While the US Fed Chairman will offer up more testimony to Congress today, the market typically sees its biggest reaction to the initial testimony. The metals markets will see a rather active slate of US scheduled data with the claims figures followed by Personal Income and Personal Spending readings. Expectations call for a modest rise in Personal Income and Spending figures but that might be countervailed by an expected rise in Initial claims. Later this morning the market will also see an ISM Manufacturing report and expectations generally call for a rise in that reading. The markets will also see US domestic auto sales figures today and that could provide the metals with some direction. Early in the trading session today the markets will see a speech from the Cleveland Fed President and later this morning the Fed's Raskin will give an economic outlook.
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