Compiled 07/02/12 6:00 AM (CT) Statistics: London Gold Fix $1,596.25 +$26.75 LME Copper Stocks 256,300 tons -850 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Not surprisingly, the gold market has started out a touch softer today after the massive range up rally at the end of last week. Slack Chinese economic data might be serving to prompt some profit taking in gold today, which in turn was seeing a lot of overbought technical dialogue in the press. Since gold hasn't paid that much attention to minimal supply side developments lately, the gold market might be expected to discount news overnight of a Gold Fields Mine complex shut down, which was apparently the result of a fire that caused multiple deaths at that facility. With weak Chinese and South African PMI readings also released overnight, the gold market is likely to take some direction from US scheduled data this morning, but unfortunately the US data is generally expected to come in on the soft side of unchanged. Gold and other physical commodity markets might see some indirect pressure from news that certain EU members might complicate ESM bond buying activities. Comex Gold Stocks were 10.832 million ounces down 161,952 ounces. Comex Gold Stocks are now at the lowest levels since 09/27/2010. Gold stocks have declined in 11 of the last 20 days. The Commitments of Traders Futures and Options report as of June 26th for Gold showed Non-Commercial traders were net long 115,756 contracts, a decrease of 22,255 contracts. The Commercial traders were net short 139,535 contracts, a decrease of 27,254 contracts. The Non-reportable traders were net long 23,779 contracts, a decrease of 4,999 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 139,535 contracts. This represents a decrease of 27,254 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese stocks were mixed in the wake of the latest domestic economic measures which showed the softest PMI readings of 2012. Most stock markets in Europe were tracking slightly higher today despite the slack Chinese data from overnight and that suggests the benefit of the EU summit has at least partially lived through the weekend. However, many market participants will still be watching sovereign debt yields in Europe for a real reading on the current condition of the European debt crisis. The US scheduled report slate today will bring a US Manufacturing PMI report, Construction Spending and a Online Help wanted report that might be given added attention because of the Monthly Non-farm payroll report due out at the end of this week.
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