Compiled 04/27/12 6:00 AM (CT) Statistics: London Gold Fix $1,654.00 +$5.75 LME Copper Stocks 251,825 tons -3,525 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market seems to have been partially undermined by the overnight news of a ratings agency downgrade of Spain and it also seems as if gold was pressured off ideas that Indian demand might be set to wane a little in the wake of a recent festival. It would also seem like an upcoming holiday in Asia discouraged some buying interest overnight. While gold might have seen some lift from BOJ easing moves, some traders spun that into a negative by suggesting the need to ease confirms the ongoing presence of widespread deflationary pressures in the Japanese economy. Surprisingly, the downgrade of Spain hasn't resulted in a definitive risk off environment, perhaps because there is talk of a possible growth compact swirling in the rumor mill. While the gold market at times yesterday seemed to benefit from weak US data, that same reaction might not be the case today, perhaps because gold prices have started out weaker today and there doesn't appear to be as much optimism spilling out of the US equity markets in the early going today as was seen at times yesterday. While some players are expecting other ratings agencies to follow S&P with downgrades of Spain, the initial reaction to the news hasn't risen to panic status. However, given the generally negative headline track overnight, the early action in the US equity markets and the US GDP reading this morning could easily define the tone of the entire US Friday trading session. Comex Gold Stocks were 10.993 million ounces up 50,929 ounces. Gold stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Asia were mixed to weaker overnight. Easing by the BOJ was partially offset by the S&P ratings agency news overnight on Spain. However, European markets were able to discount the S&P downgrade of Spain overnight and managed to claw back into positive ground off improved action in construction and material issues. US stock markets were showing mixed early action today, as some investors remain concerned toward the debt situation in Europe. The US economic report slate today contains a 1st quarter GDP estimate that is expected to come in with a gain between 2.3% and 2.6%, with expectations for consumer sentiment not expecting much of a change from prior readings.