Compiled 03/08/12 6:00 AM (CT) Statistics: London Gold Fix $1,701.50 +$19.00 LME Copper Stocks 280,025 tons -875 tons Shanghai Copper stocks +5,401 tons to 221,487 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market has jumped sharply higher in sync with higher equities and a stronger Euro. Apparently the market thinks the fix is in for the Greek event today, but with US data recently supporting a recovery view, the bull camp in gold might feel like they have a number of themes operating in their favor today. In fact, rumors in the Asian equity markets that the PBOC might be poised to embark on another easing effort, probably gave gold and physical commodity markets a portion of their lift over the last several hours of trade. Another potential positive for gold today, is the positive buzz being generated by the latest product release from Apple, as that has at least partially distracted the trade from an intense focus on Greece. After such a definitive range up move in April gold this morning, the bull camp might need to see something supportive from the US jobs front. In addition to weekly claims, the markets will also be presented with a private Challenger layoff report early in the trading session. Gold also saw generally positive physical gold demand talk from China and India overnight and that joins forces with ideas that the US Fed has continued to foster an inflationary environment with its bond-buying program. It is also possible that gold and physical commodities are seeing some follow through support from news of a noted interest rate cut in Brazil, as that in turn has fostered talk of a series of South American rate cuts ahead. In fact, there would seem to be a long list of central banks that are thought to be into an easing posture. Comex Gold Stocks were 11.441 million ounces up 21,406 ounces. Gold stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asia equity markets were higher overnight as that region was anticipating something favorable from the Greek debt swap but those markets were also tossing around the idea that the PBOC might be poised to embark on more easing efforts. European equity markets were also higher overnight off positive vibes off the upcoming Greek debt swap and those views also resulted in falling European debt yields. US equity markets were showing noted gains this morning, as it appears that most global equity markets think the Greek situation will take a positive turn today. While the market saw a softer than expected Australian Unemployment Report overnight, the focus of the trade might be expected to shift back to the US weekly initial claims results and perhaps to the Challenger Layoff report. With US Consumer Credit jumping sharply in the month of January in the report yesterday afternoon and the ADP figures yesterday mostly positive, the view toward the US economy remains positive and that has probably provided the metals complex with additional support over the last 24 hours of trade.
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