Compiled 06/21/12 6:00 AM (CT) Statistics: London Gold Fix $1,600.00 -$18.75 LME Copper Stocks 252,150 tons +1,800 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While the August gold contract has managed to hold above the prior session's low in the early US Thursday trade action, prices are within relatively close proximity to a fresh downside breakout. With global equity markets disappointed with the results of the FOMC meeting and perhaps further disappointed with the Fed's downwardly revised economic projections, the gold trade might be facing a quasi deflationary environment. In fact, seeing the lowest crude oil price since last October's spike low and seeing weak Chinese manufacturing estimates released overnight, probably applies pressure to a host of physical commodity markets today. Adding into the bearish tone today are predictions that Indian gold imports for June are likely to have fallen sharply from year ago levels. While the gold market might attempt to fan hopes of an ECB rate cut ahead, it could take a couple trading sessions before gold prices successfully rekindle central bank easing hopes again. In general, fears toward the Euro zone debt crisis remain in place overnight, as strong demand for Spanish and Italian debt masked another escalation of sovereign EU borrowing costs. It would also seem as if gold will be facing currency related headwinds today. Comex Gold Stocks were 11.062 million ounces down 8,391 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Stocks were weaker in China, with Hong Kong stocks falling down to a fresh multi week low overnight and the Shanghai Composite also under pressure in the wake of another round of disappointing private Chinese manufacturing readings. European equities were also weaker early this morning, with investors apparently put off by the disappointing Chinese data released overnight. While German data overnight was also discouraging that news might have been partially countervailed by a surprise pick up in May UK retail sales figures. In the end, weakness in equities around the globe suggests that the US extension of operation twist was not seen as an overly positive extension of the pattern of global central bank easing. However, strong demand at a series of EU member debt auctions overnight has served to truncate anxiety a bit. In looking ahead, the trade will see an active US scheduled report slate today with claims, Leaders and existing homes sales due out. Early estimates call for weakness in two of the scheduled US reports and an unchanged reading in the third report from the US.