Compiled 06/28/12 6:00 AM (CT) Statistics: London Gold Fix $1,567.75 +$.25 LME Copper Stocks 256,100 tons +1,225 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) August gold appears to have a bit of an affinity for the lows this week, as prices have drifted back down to that level in the overnight action. With the world watching the slow motion back and forth headline flow of debate between key EU leaders and sovereign borrowing costs for Spain and Italy continuing to rise, it isn't surprising to see global equities and physical commodity markets like gold tracking lower again. With some weak scheduled data seen in Europe overnight and US data later today not expected to give off a definitive signal on the economic front, it might be difficult to throw off the entrenched expectation of slowing being seen throughout the world. While the Bombay Bullion Association President overnight offered up predictions of a significant rebound in Indian gold imports years in the future, he also noted an increase in recycled gold production and acknowledged the prospect of a sharp decline in 2012 Indian gold imports. Therefore gold was probably a little disappointed with the flow of gold news from India overnight. In fact, Indian officials overnight suggested that Indian gold buyers needed to be educated in the risks of buying gold and that could also be seen as a negative price development. Unless there is a change of wind with respect to EU leader interactions, gold and other physical commodities might be faced with a risk-off vibe at the coming end of the EU summit. With gold somewhat lifted by favorable US data yesterday, traders should look to the US data window this morning for some type of minor price reaction. Comex Gold Stocks were 11.034 million ounces up 29,571 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Shanghai stocks posted their 7th straight decline overnight and reportedly Chinese markets also saw very low trading volume. European equity markets were weaker again to start, as press coverage suggests that EU leaders are not finding common ground yet on a number of basic issues. With German unemployment levels rising overnight and Euro zone consumer confidence declining slightly, but falling further from very weak levels overall, the news flow from Europe is generally fostering a risk off vibe. The US scheduled report slate today will present initial claims and a revision of the 1st quarter US GDP reading. Expectations for the claims call for a minimal non distinct decline, while the GDP reading is generally expected to be mostly unchanged. Therefore the trade might not be able to glean much in the way of fresh direction on the US economy from the data flow this morning.