Compiled 08/15/12 6:00 AM (CT) Statistics: London Gold Fix $1,597.75 -$19.75 LME Copper Stocks 236,375 tons -1,125 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With a modest lower low to start today, the bear camp might feel like they have an edge in gold, especially in the face of adverse currency market action, weaker equities and the appearance of a risk off vibe. Fears of more slowing in China overnight probably pressured gold in the overnight trade, but a recovery in UK equities and decent numbers from the UK have tempered the global fears of slowing, just ahead of the US Wednesday trade action. At times overnight, gold did see some support from fresh talk of easing from Europe, but gold at times over the last 36 hours has also been pressured by fears that QE part 3 in the US might not be forth coming soon, especially with some US data recently holding together. Gold did see some evidence of rising gold production from a smaller gold mining concern overnight, but that news probably wasn't applying direct pressure to gold prices. However, the gold market appears to be on the defensive to start today and that is probably out of deference to the impending US data flows later this morning. Some traders think modest gains in Industrial Production and Capacity Utilization readings could rekindle selling pressure in gold this morning and that in turn could foster technically related selling, especially if even more new lows for the move are forged. Comex Gold Stocks were 10.860 million ounces down 3,332 ounces. Stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese shares were sharply lower overnight, as corporate earnings fears were ignited by poor performance at one of the largest Chinese insurers. German and French shares were lower to start today, while equities in the UK managed gains in the wake of better than expected UK data and news that the BOE didn't discuss cutting interest rates in their last meeting. In looking ahead to the US action today, there will be a very active US report slate with the trade seeing Industrial Production/Capacity Utilization as well as CPI, an Empire State Manufacturing report and a NAHB housing index release. The trade generally expects to see some growth from the scheduled data, but other data today could partially offset those expectations.
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