Compiled 03/02/12 6:00 AM (CT) Statistics: London Gold Fix $1,714.50 -$6.50 LME Copper Stocks 289,000 tons -3,250 tons Shanghai Copper stocks +5,401 tons to 221,487 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Despite news that overnight deposits in the Euro zone reached a new all time high record, the overnight macro economic vibe doesn't appear to be up overly beat. In other words, despite evidence of massive liquidity in the Euro zone, many markets seem content to look back to disappointing Fed speak from earlier this week for guidance. Not surprisingly this week's large compacted washout in gold prices prompted suggestions to buy value, but the break also prompted some gold bears to suggest that gold was vulnerable to even more declines. The bull camp has tried to frame record high ECB overnight deposits, as a positive, by suggesting that condition confirms a massive amount of liquidity is in place in the Euro zone. Unfortunately for the bull camp in gold, gold prices were weaker in India overnight, but that potential negative impact on US gold prices was moderated by a slight bounce in Asian gold prices last night. Apparently gold is somewhat discouraged by the lack of US QE3 prospects in the offing right now, and that in turn could make regularly scheduled US data flows even more important to a market that could be searching for fresh direction. However, the US scheduled report slate today doesn't contain much in the way of market moving reports! Comex Gold Stocks were 11.461 million ounces up 3,867 ounces. Gold stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Hong Kong and Chinese equity markets were stronger overnight off ongoing strength in real estate related shares. European equity markets were also generally higher off ongoing gains in banks and financial issues. However, early US equity market action was weaker in what seemed to be an ongoing disappointment over the perception of slightly reduced US QE3 prospects. While the trade generally remains positive toward the situation in the Euro zone and recent US economic numbers have provided enough positives to provide support to most physical commodity markets, the metals trade seems to lack a definitively positive risk-on vibe in the early US Friday trade action. Today's economic report slate only has a couple US reports due out and they might be considered third tier readings. The primary number this morning will probably be the New York ISM regional business index and that will be followed by a weekly economic activity index from the Economic Cycle Research Institute. However, the scheduled reports this morning aren't expected to have a noted impact on macro economic sentiment. The only scheduled Fed speech today probably won't be an impact on the markets either, partly because it is scheduled after prime market hours.
Join the Discussion