Compiled 07/30/12 6:00 AM (CT) Statistics: London Gold Fix $1,616.50 -$3.25 LME Copper Stocks 249,075 tons -1,225 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) After the noted run up in gold prices last week, gold might have to prove it can consolidate the recent gains, especially if talk of fresh easing becomes less frequent in the days ahead. However, gold will be confronted with an FOMC meeting and decision on Wednesday, with the trade also looking forward to a potentially critical US Non farm payroll result this coming Friday. At least to start today, a slightly softer Euro and some weak Euro zone data has tempered the benefits of the "do whatever is necessary to save the Euro" comments from last week and it is possible that gold is set to shift back into a classic physical commodity market, that in turn is facing fresh evidence of slowing throughout the world. In addition to the US FOMC meeting on Wednesday, the markets will also be presented with an ECB meeting on Thursday and it goes without saying that last week's pro-Euro comments from Draghi have already set a somewhat high bar for that meeting. Some players think that fresh evidence of weakness from the US at the end of last week and the prospect of a weak monthly payroll reading this Friday, could push the US Fed to act and therefore gold prices might garner some support into the upcoming FOMC statement window. Comex Gold Stocks were 10.807 million ounces up 16,051 ounces. Gold stocks have declined 11 of the last 20 days. The Commitments of Traders Futures and Options report as of July 24th for Gold showed Non-Commercial traders were net long 102,792 contracts, a decrease of 18,142 contracts. The Commercial traders were net short 128,613 contracts, a decrease of 24,145 contracts. The Non-reportable traders were net long 25,821 contracts, a decrease of 6,003 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 128,613 contracts. This represents a decrease of 24,145 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian Shares were weaker overnight, with the Shanghai market settling within close proximity to 3 year lows. European shares saw some initial gains in the wake of hopes for easing from the ECB but that optimism wasn't extended into the early US equity market action. Evidence of ongoing slowing was seen in the Euro zone this morning and there continues to be talk of yet another critical credit market show down in the Euro zone into the September time frame. The US scheduled report slate today is somewhat active with regional Fed manufacturing data due out and some tacit expectations for QE3 periodically popping up in the headlines. While gold and silver might garner some minor lift from significant strength in grain prices, the inflation story is mostly curtailed because of a lack of definitive forward motion in the global economy.
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