Compiled 08/14/12 6:00 AM (CT) Statistics: London Gold Fix $1,614.50 -$7.75 LME Copper Stocks 237,500 tons -1,675 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With a slightly positive outside market environment in place, gold prices have started out on a positive track early today. Evidence of renewed interest in gold derivative instruments adds to the positive tone, which was probably the result of a stronger Euro and generally higher global equity market action. The gold market seemed to discount news of increased gold production at two smaller to mid range gold producers overnight. With higher gold prices in the face of the European data flows, it would appear that some gold bulls are once again embracing the prospect of additional easing from the Euro zone but it is also possible that gold was able to draft some support off talk of fresh easing from the BOJ overnight. It is also possible that gold is drafting some support from hope that ongoing weakness in the Chinese economy is serving to keep hope of PBOC easing alive. In the end, seeing the Euro manage a fresh high from the move overnight and seeing US stocks reach the highest level since the April 2nd high, seems to have left the bull camp in gold with enough of an edge to control the early US trade action. Comex Gold Stocks were 10.864 million ounces down 27,628 ounces. Stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese shares were higher overnight, but gains seemed to come from defensive investment in stocks that are expected to perform well in slow conditions. It is also possible that Asian shares were assisted by talk of fresh easing moves from the BOJ overnight. European shares were higher overnight, as France and Germany posted data that wasn't as bad as some fears. The German market also held up despite a sharp drop in economic expectations and predictions of even more slowing ahead from the widely followed ZEW. Economic data flow from the US will become a little more active today, with a PPI report and retail sales for July due out. With a modest rise in US retail sales expected and initial action in equities carving out some upside action, there would appear to be a slight risk-on vibe to start today.
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