Compiled 05/30/12 6:00 AM (CT) Statistics: London Gold Fix $1,548.00 $-25.00 LME Copper Stocks 227,100 tons +1,300 tons. GOLD MARKET FUNDAMENTALS: (6:00 AM CST) August gold managed a slight lower, low overnight and with a mostly negative outside market environment in place early today, the bear camp in gold has to feel like they have the initial edge today. With recent Chinese stimulus hopes tamped down by Chinese media sources overnight and noted gains in key European debt yields and sharply rising CDS rates, the trade is facing a risk-off view to start the Wednesday US trade. With an unchanged reading anticipated for the US Pending home sales report this morning it might be difficult to dramatically shift sentiment in gold prices this morning. Some traders are watching the On-Line Help wanted index release this morning, suggesting that the proximity to the monthly Non Farm payroll report on Friday could make the report today more critical. In the near term, the focus of most physical commodity markets is expected to remain centered on the severity of the Spanish banking situation, especially with bank recapitalization rumors rampant in the trade overnight. Therefore the gold market is seemingly losing favor off a number of potential global slowing threats and some traders think it will take very strong evidence of growth in the US to even begin to countervail the threat of slowing from China and Europe. Currency market pressure is also likely to favor the bear camp in gold today as the Euro has remained under pressure and the Greenback has once again returned to its flight to quality standing. Comex Gold Stocks were 11.002 million ounces up 386 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese stocks resumed a downward pattern overnight as recent Chinese stimulus hopes were reduced once again by regional media sources. Not surprisingly, European equity markets also resumed a downward march as Euro zone concerns were present again in the facing of rising Italian and Spanish debt yields. Some of the European equity market weakness overnight might also have been the result of the dampened Chinese stimulus talk. The US markets were showing moderate losses in the wake of the latest up tick in Italian and Spanish debt yields, as the pace of the US economy isn't thought to be strong enough right now to stand up to ongoing Euro zone and Chinese slowing threats. The US economic report slate today has pending home sales and an On-Line Help wanted index report but neither of those reports is expected to promote a return to a risk-on vibe.
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