Compiled 05/14/12 6:00 AM (CT) Statistics: London Gold Fix $1,563.00 $-16.25 LME Copper Stocks 218,300 tons -2,975 tons. GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With a hard range down extension this morning in gold prices, the fear of global slowing and the residual turmoil from Greece has apparently picked up where it left off at the end of last week. Surprisingly news of a 50 point reduction in the Chinese RRR failed to provide any support to global equity markets and to physical commodity prices and that has to be very discouraging to the bull camp in gold. However, residual fear off the situation in Greece has kept anxiety in place toward the entire Euro zone, which in turn is fostering ongoing uncertainty toward Italy, Spain and Greek debt instruments! While the current focus of the gold trade is on the threat of slowing demand off ongoing problems in the Euro zone, the gold market also saw evidence of increased physical gold production overnight from Kazakhstan for the first four months of 2012. Gold prices might have seen some minor cushion from favorable Indian gold festival demand talk, but some players think that news is too little, too late. In looking ahead to the US action, the gold bulls are facing adverse currency market action and noted weakness in US equities and that recently hasn't been a good combination for gold. Comex Gold Stocks were 11.015 million ounces down 32,109 ounces. The Commitments of Traders Futures and Options report as of May 8th for Gold showed Non-Commercial traders were net long 120,979 contracts, a decrease of 26,396 contracts. The Commercial traders were net short 151,196 contracts, a decrease of 35,653 contracts. The Non-reportable traders were net long 30,217 contracts, a decrease of 9,256 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 151,196 contracts. This represents a decrease of 35,652 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets remained weak again last night despite a reserve rate requirement cut by China over the weekend. Apparently investors in Asia are concerned about additional slowing ahead and many press outlooks are now predicting other easing actions from the Chinese government to cushion against further slowing. European equity markets also remained very weak as a political setback in Greece put that country back into the headlines again. An Italian debt auction posted the highest yields since January early this morning but decent demand for the Italian debt today kept the situation in Italy from becoming a more major and sustained anxiety event. Early action in the US equity markets showed notably weak action with the S&P falling down to the lowest level since March 7th. A thin US economic report slate today, could leave the risk off vibe in place and leave the anxiety focus squarely on European affairs.