Compiled 05/16/12 6:00 AM (CT) Statistics: London Gold Fix $1,537.50 $-21.50 LME Copper Stocks 215,350 tons -1,000 tons. GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The hard down action has continued with June gold seemingly failing at a series of chart points overnight. Ongoing fear of slowing off the turmoil in the Euro zone has remained the primary focus, but fears of slowing growth in China and deceleration in the US economy are also issues prompting many longs to exit gold and other physical commodity positions. Action in the currency markets continues to leave the pressure on gold, as a rush out of the Euro and into US Treasuries highlights ongoing interest in a few select safe haven instruments. The gold market might also be fearful of upcoming World Gold Council demand figures, but given the magnitude of the slide in gold prices since the 1st quarter highs, the gold trade has probably factored in a good measure of slowing gold demand. While some gold bulls might hope for some hints of easing from the US Fed in their meeting minutes release later today, it might be premature to think that the Fed was on the cusp of easing in their last meeting. While US scheduled data might be of some importance today, it would be a little surprising for US economic information to fully take the world's focus away from the troubles in the Euro zone. In fact, some traders are already looking ahead with concern toward longer term Spanish debt auctions later this week as that could be the next key junction point for the EU situation. Some traders think it will take positive US data just to slow the rate of decline in gold prices today. Comex Gold Stocks were 10.972 million ounces down 32,150 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) The Hong Kong market resumed its downward march last night with the largest daily loss in several months overnight. Shares also weakened on mainland China as investors overnight were disappointed by weaker than expected Chinese loan demand figures for May. Not surprisingly, European equity markets were mixed to weaker again overnight with a fairly negative flow of headlines on Greece keeping investors on edge. With reports of many Greeks pulling deposits from banks, that in turn has fanned talk of a Greece exit from the Euro zone. Early action in the US equity markets was mixed and two sided as the hangover from the Euro zone has kept investors nervous. The main feature of the US trade today could be US housing data or it could be the FOMC meeting minutes release later in the day.
Join the Discussion