Compiled 06/26/12 6:00 AM (CT) Statistics: London Gold Fix $1,573.25 +$18.25 LME Copper Stocks 253,250 tons +50 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market has been able to hold a large portion of the Monday rally through the overnight action. However, it is somewhat unclear what the focus of the gold market is this week, as it appeared that gold yesterday was being lifted by classic flight to quality views and in turn gold appeared to be mostly immune to the prospect of ongoing broad based deflationary selling pressure. Nonetheless, gold looks to be facing ongoing fears of global slowing, as the European debt crisis remains in limbo and the outlook for the US economy generally remains weak. Gold might have seen some supported from predictions of a recovery in Indian gold imports, in the event that this year's Indian monsoon is normal. However, Indian gold demand from the first half of 2012 has been very soft and unless the slack first half demand has significantly pent up retail demand for gold in India, it could be very a tall order for the monsoon to significantly revitalize gold demand in India. Overnight the IMF released central bank gold activities for a number of Global central banks and it seems as if more countries added minimally to gold reserves than those who sold gold reserves. The gold market might be impacted by gold options expiration today, but the main focus of the trade today might be US scheduled data, as most gold traders still think that gold is being driven primarily by the prospect of additional US easing. Therefore, it is possible that EU developments might temporarily take a back seat to US scheduled data this morning. Comex Gold Stocks were 11.064 million ounces down 163 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Mainland Chinese equities were weaker again overnight, but Hong Kong shares managed to claw out a minimal gain. European equity markets were weaker off rising yields in Italy and Spain and also because of a lack of constructive dialogue ahead of the coming EU summit. The markets also saw more evidence of slowing in the Euro zone, from a sharp decline in Italian retail sales from the prior month. The US scheduled report slate has a series of private chain store sales reports, the Case-Shiller Home price survey, a Richmond Fed business Activity index and a Consumer Confidence report. Expectations call for a decline in the 20-City Case-Shiller Home price index and a minor decline in US Consumer Confidence.
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