Compiled 04/12/12 6:00 AM (CT) Statistics: London Gold Fix $1,655.50 +1.50 LME Copper Stocks 266,075 tons -1,075 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With acceptable auction results from Italy this morning, somewhat positive psychology in China overnight and generally supportive US corporate news flow, physical commodities like gold should have some underpin on the charts. However, gold has started out weaker, as the global macro economic outlook has improved but in general, but the outlook still isn't overly up beat. Internal fundamental developments in gold overnight were slightly negative, with a key gold mining company shares downgraded to a sell by a major brokerage firm, news of sharply higher quarterly gold production from a Russian gold miner and signs of ongoing negative divergence between gold prices and the rest of the metals complex. However, the gold market also saw news of another decline in South African gold output in February versus year ago levels. In fact, gold production on a year over year basis declined in excess of 11% and that continues a trend of falling production from that area. Unfortunately for the gold bulls, a flurry of Fed speeches today might not present overly supportive dialogue, as the Fed's Beige Book yesterday afternoon generally pointed to most regions in the US exhibiting signs of ongoing growth. With gold showing initial negative divergence with the rest of the metals complex early today, the bull camp would seem to need even more gains in US equities, positive results from US claims and even more support from the currency markets to carve out minor gains. Comex Gold Stocks were 11.155 million ounces down 64 ounces. Gold stocks have declined in 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were higher overnight, with the trade still tossing around the idea of upcoming Chinese easing, but there also seemed to be some hope that Chinese GDP readings tonight would come in positive. The European markets were softer, as they marked time ahead of Italian debt auction results, but it also seemed as if fears of slowing in the Euro zone were still being discussed. On the other hand, expectations of ongoing ECB bond buying activity and an eventual acceptable auction yield from Italy, should tamp down European economic anxieties temporarily. At least in the early US trade, equities were slightly higher, but the market will be presented with a fairly active report flow later today. Early in the session, the market will see a Fed speech from Dudley and that will be followed by PPI for March, Initial and Ongoing claims, International Trade figures and a mid morning speech from the Fed's Lockhart. There will also be speeches from the Fed's Plosser and Raskin in the early and late afternoon action.
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