Compiled 05/10/12 6:00 AM (CT) Statistics: London Gold Fix $1,590.00 $+4.50 LME Copper Stocks 219,850 tons -1,075 tons. GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While June gold prices look to start the Thursday US trade on a slightly weaker footing, the bull camp might see minimal declines this morning as a victory, especially after seeing two consecutive, big range down extensions in the two prior sessions. Clearly ongoing fears of turmoil in the Euro zone remains at the top of the bear's list, but seeing softer than expected import and export data from China for April overnight, is probably an issue that re-emboldens the bears again in some physical commodities today. While gold might see a minor underpin from a bullish investment bank gold price forecast that was released overnight, that news was probably countervailed by evidence that Indian gold imports for April, in terms of value, fell by roughly $1.6 billion versus year ago levels. With June gold prices to the lows yesterday, falling $94 an ounce from the May highs, it is possible that gold has become short term technically oversold, but without an improvement in US macro economic views and a reversal in currency market action, it could be difficult for gold to throw off the bearish bias. Therefore, the bull camp probably needs to see something positive from the US claims data, especially if they hope to stem the recent pattern of weakness on the charts. While the gold markets focus has been primarily on the demand side of the equation, the bulls might be cheered by news overnight of a 11.6% decline in South African gold output for the month of March versus year ago March levels. Comex Gold Stocks were 11.036 million ounces down 24,720 ounces. Gold stocks have increased in 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were under pressure in the wake of Chinese trade data that disappointed and the Hong Kong market extended to a 6th straight loss. European equity markets also remained under pressure with the Chinese slowing fear cited and residual concerns toward the Greek political situation also weighing on sentiment. The European markets are watching to see if the newly elected Greek leader will be able to form a government and then the trade will begin to fret over whether that government's will honor past EU austerity commitments. Early action in the US equity markets was mixed to weaker, with a lack of confidence toward Europe still hanging over the trade. After a rather thin scheduled report slate from the US earlier this week, the trade is likely to take a lot of direction this morning from US initial and ongoing claims figures and also from the US Trade Balance report.
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