Compiled 06/15/12 6:00 AM (CT) Statistics: London Gold Fix $1,622.25 +$3.25 LME Copper Stocks 249,450 tons +4,375 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market starts the final session of the week just under this week's highs, $20 an ounce below the last two months highs and $96 an ounce above the last two month's lows. In addition to signs that the Pro-bailout party might be leading the polls in Greece, there is also an expectation of coordinated central bank support for the world economy in the event that conditions deteriorate significantly in the coming 72 hours of trade. It also seems as if the trade is seeing signs of potential movement from the EU/IMF with regard to their next plan to contain the debt contagion threat and in turn revive the recession bound European economy. However, details on those potential central bank efforts are very thin and potentially unsubstantiated. Apparently gold has remained focused on the prospect of coordinated easing but it would also seem like the gold trade isn't overly optimistic about a European bond offering or some other TARP like maneuver in the coming sessions. While the gold market has probably seen some classic flight to quality buying this week, off expectations of a Euro zone crack up, those traders didn't seem to be seriously threatened by evidence that global authorities appeared to be circling the wagons ahead of this weekend's developments. The US scheduled report slate today has mixed expectations, with marginal gains project in Industrial Production/Capacity Utilization readings and those results are largely expected to be offset by the Empire State results. Comex Gold Stocks were 11.076 million ounces down 32 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian stocks were stronger overnight, as the markets in that region were lifted by talk of coordinated central bank intervention. European equities were also positive off hopes of central bank action but many investors remain concerned about Spanish and Greek problems overwhelming efforts to contain the debt crisis. Early US equity market action was also higher and that is impressive after the noted run up in prices the prior trading session. The US scheduled report slate today is pretty active, with Industrial Production and Capacity Utilization readings as well as the Empire State Manufacturing report. There will also be a Treasury International Capital flows report and a Michigan Consumer Survey.
Join the Discussion