Compiled 04/30/12 6:00 AM (CT) Statistics: London Gold Fix $1,662.50 +$8.50 LME Copper Stocks 228,350 tons -3,475 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With some additional Spanish Bank down grades overnight and news that Spain has fallen back into recession, the European debt situation has been thrown back onto the front burner again. The negative macro economic view from the Euro zone and a string of weak data points from the US recently has also caused some downward revisions for the upcoming US Non farm payroll reading. Some economists are suggesting that warm early spring weather might have pulled forward spring or seasonal hiring in the US and that could produce a weaker than expected US number at the end of this week. There would also seem to be some international discussions that austerity measures are too strenuous right now and seeing that line of thinking gain prominence could eventually lend some fresh support to gold prices. In the near term, the gold market looks to take its direction from US stocks and perhaps from the global macro economic outlook. Traders should be on the lookout for positive gold price action in the wake of weak US data flows, as that type of action would confirm that gold continues to hope for easing from the US Fed. Comex Gold Stocks were 11.000 million ounces up 7,000 ounces. Comex Gold stocks are now at their highest levels in the past 10 sessions. The Commitments of Traders Futures and Options report as of April 24th for Gold showed Non-Commercial traders were net long 139,449 contracts, a decrease of 7,384 contracts. The Commercial traders were net short 173,854 contracts, a decrease of 9,322 contracts. The Non-reportable traders were net long 34,405 contracts, a decrease of 1,939 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 173,854 contracts. This represents a decrease of 9,323 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Equity markets in Asia were higher off the hope for US Fed easing, but there were also some market closures due to holiday in the region. European markets were able to initially discount lingering Euro zone debt fears, but those markets fell back into negative territory in the wake of a negative Spanish GDP reading, which in turn came on the back of a very high Spanish unemployment rate last week. US stock markets were showing some initial weakness this morning, as the fear toward Europe and concerns of a soft US Non farm payroll reading at the end of this week, have left many investors concerned.
Join the Discussion