Compiled 07/06/12 6:00 AM (CT) Statistics: London Gold Fix $1,591.75 -$25.00 LME Copper Stocks 254,450 tons +1,725 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With a rather noted range down slide overnight nearby gold prices have seen a high to low decline over the last 24 hours of roughly $38 an ounce. With gold facing another session of adverse currency market action and weakness in almost all physical commodity markets to start today, the bear camp in gold has to feel like they have an edge. However, the bull camp in gold probably feels like the surprise rate reduction in China this week and the prospect of additional assistance from the US Fed in the event more slowing is seen, could eventually serve to temper the downside action in gold prices. On the other hand, fears of slowing remained in place overnight and it would seem like anxiety toward further Euro zone debt turmoil has also remained on the back burner. Gold might be seeing some pressure from news of softer Hong Kong gold exports to China in the latest monthly figures. Countervailing the Chinese gold import news overnight, is news that Australia had documented a strong jump in gold minted coin sales into the US and that in turn has apparently propelled demand for Australian mint gold coins above last year's levels. However, the gold bulls might be faced with a somewhat defeated situation today, as soft US jobs data could confirm the global slowing trend and that in turn could leave the initial liquidation pressure in place. While softer than expected US data might eventually spark easing talk from the US Fed, gold prices might first lose further ground in response to the soft data before that news produces enough fresh rate cut talk to cushion gold prices. In the event that US data is at or better than expectations that could simply extract expectations of easing straight away and that might serve leave the early pressure on gold prices. Comex Gold Stocks were 10.811 million ounces down 683 ounces. Comex Gold Stocks are now at the lowest levels since 09/20/2010. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese equity markets were mixed again overnight, with Hong Kong shares lower and mainland Chinese shares managing to post a minor gain in the face of another weekly loss. European shares were weaker with the DAX posting a somewhat noted slide overnight. The US scheduled report slate today will present monthly payroll data for June, which is generally expected to show a gain of roughly 100,000 jobs, which will be an improvement on the prior month's gain of only 69,000 jobs. Apparently a series of central bank easing moves this week have failed to improve macro economic sentiment around the globe and without an as expected US Non farm payroll result, the fear of slowing and deflation are likely to dominate over hope of a return to growth. While a softer than expected US Non farm payroll result will probably enhance the fear of global slowing further, that type of news could rekindle talk of US easing later in the session.
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