Compiled 05/31/12 6:00 AM (CT) Statistics: London Gold Fix $1,567.50 $+19.50 LME Copper Stocks 230,675 tons +3,575 tons. GOLD MARKET FUNDAMENTALS: (6:00 AM CST) After mounting a rather impressive recovery effort yesterday, from a fresh new low for the move, August gold has managed to start out the Thursday US trading session a bit higher and right on yesterday's high. A slight improvement in macro economic sentiment is seen from European and US equity market action and perhaps because of somewhat supportive currency market action. Some traders yesterday suggested that the gold recovery was the result of a renewed flight to quality status for gold, off renewed fears of a Euro zone breakup. However, other traders continue to focus on the prospect of a 4th straight monthly loss in gold prices and an ongoing risk-off environment and that could leave gold prices vulnerable to negative news from the Euro zone and or from any sign of soft data from the US. Not surprisingly, the Spanish stock market posted the biggest monthly loss of the noted equity measures and that action leaves a threat hanging over the entire Euro zone. With Brent crude oil posting the biggest monthly decline in 24 months, physical commodity markets are certainly seeing a very difficult environment. Apparently some traders thought that gold's recovery bounce off the low yesterday was the result of renewed easing hopes in the wake of soft US data and therefore the gold markets reaction to the US data flow this morning will be a very important junction for the trade. On the other hand, today's US data won't have its usual impact due to the ultra critical monthly US payroll readings due out on Friday morning. Comex Gold Stocks were unchanged at 11.002 million ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese stocks were down again and that also resulted in a monthly loss in most equity market measures. European equity markets and the FTSE mounted also recovery effort but many investors were not expecting anything more than a temporary technical reprieve from the European debt saga. The US markets were showing minor gains but that action didn't seem to be the result of a definitive bullish headline development or potential. The US economic report slate today has a private jobs report due out early from ADP, initial and ongoing claims, a Chicago PMI report from the ISM and a Fed speech early in the session.
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