Compiled 08/03/12 6:00 AM (CT) Statistics: London Gold Fix $1,590.00 +$18.75 LME Copper Stocks 244,725 tons -2,075 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While December gold has carved out some minor short covering gains overnight, the gold market comes to the end of a week that has generally brought forth disappointment from the central bank front. Some traders think that the US payroll tally needs to show at least a 6 digit gain to countervail the lack of action from the central banks, while a small portion of the gold trade continues to hold out hope that weak US data will revive talk of US easing. Given the slide in gold prices this week, it would seem like gold was once again facing a risk-off environment where fears of slowing were emboldening the bear camp. Therefore, there might be some justification for the assumption that a respectable Non farm payroll gain today will provide gold with some support. A WSJ article suggests that gold might be set to get a lift in the event that grain prices continue to rise, but recently the daily correlation between gold and grain prices hasn't been overly tight. Furthermore, it is somewhat difficult to foster inflationary psychology in the face of broad based global slowing evidence. While gold saw evidence of lost gold production from a Philippines mining operation overnight gold hasn't paid that much attention recently to minor supply side developments. Comex Gold Stocks were 10.809 million ounces down 1,719 ounces. Stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Chinese Shares were mixed overnight, as Hong Kong shares finished lower and the Shanghai market was marginally higher. European shares were generally higher in the wake of gains in bank shares, but somewhat favorable data from the Euro zone overnight might have given investors an added boost. Euro zone retail sales managed to rise for the second straight month and Germany managed a slight improvement in a German July PMI report and that serves to improve sentiment from the depths seen in the wake of the ECB misfire. However, the metals markets are probably expected to mark time on the charts until the US Non farm payroll report is released later this morning but that report is generally expected to produce a gain in jobs of 90,000 to +110,000.
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