Compiled 04/09/12 6:00 AM (CT) Statistics: London Gold Fix N.A. LME Copper Stocks 264,775 tons N.A. GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market is supposedly tracking higher off renewed hope of QE from the US Fed in the wake of the disappointing US payroll results from last Friday but that line of thinking might be put to a test in the face of a Fed Chairman Speech later today. One might also expect a hotter than expected Chinese inflation reading would have been seen as a negative to gold this morning as the Chinese are probably not in a positive yet, to step in a provide assistance to their economy. However, the gold bulls were fortunate in the wake of an end to the Indian Jewelers strike, which ended last Friday, after Indian officials promised a roll back in import taxes. With the strike lasting 20 days that is thought to have pent up some gold demand for imports ahead of an important festival at the end of this month. However, seeing the US economy stumble in the payroll reading last week, certainly has the US and global equity markets under pressure and that action is probably serving to hold back the early gains in June gold. Traders will probably parse the speech of the US Fed Chairman at the Atlanta Fed's Annual Financial Markets conference but that speech is a dinner speech and therefore the overnight markets are likely to react to that event. With the only other scheduled data due out today, coming from the Chicago Fed Midwest Manufacturing reading it is possible that the gold bulls will need a weak number from that report to further the talk that the Fed might be forced to rethink their on-hold stance. The Commitments of Traders Futures and Options report as of April 3rd for Gold showed Non-Commercial traders were net long 149,599 contracts, a decrease of 10,452 contracts. The Commercial traders were net short 187,231 contracts, a decrease of 10,725 contracts. The Non-reportable traders were net long 37,632 contracts, a decrease of 273 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 187,231 contracts. This represents a decrease of 10,725 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were mostly weaker overnight, with the markets in that region put off balance by the US payroll result from last Friday and also because of troubling Chinese inflation readings that were released overnight. The European markets were still closed to be an extended holiday. US stocks were sharply lower in the early going today, with the disappointment from the US Non farm payroll results still resonating in the marketplace. From the US scheduled report front today, the market will see a Chicago Fed Midwest manufacturing report and that will be followed by a Fed Chairman Speech, which might attract extra attention, as the payroll readings from Friday might have some analysts rekindling hopes of QE3 ahead.
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