Compiled 08/20/12 6:00 AM (CT) Statistics: London Gold Fix $1,615.25 -$1.25 LME Copper Stocks 234,150 tons -400 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While December gold prices have remained within close proximity to last week's highs, the gold market could be facing some cross currents from Asia, where the lack of fresh easing action has dampened sentiment periodically. Surprisingly the gold market has managed to shake off negative Chinese gold demand news at the end of last week and that is probably the result of lingering Chinese easing hopes and increased talk of gold derivative investment interest in China going forward. Even more surprising is the fact that gold last week managed to maintain a mostly positive track on the charts, despite ideas that US QE part 3 was becoming less likely in the near term. In the action today, gold isn't expected to see much of a reaction to US scheduled data, as the Chicago Fed National Activity Index isn't expected to throw off a definitive economic signal. Comex Gold Stocks were unchanged at 10.845 million ounces. Gold stocks have declined 12 of the last 20 days. The Commitments of Traders Futures and Options report as of August 14th for Gold showed Non-Commercial traders were net long 118,223 contracts, a decrease of 788 contracts. The Commercial traders were net short 150,447 contracts, a decrease of 1,917 contracts. The Non-reportable traders were net long 32,224 contracts, a decrease of 1,130 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 150,447 contracts. This represents a decrease of 1,918 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese stocks were weaker overnight, as property stocks in Shanghai were weaker, off fears that the Chinese government might step back in to dampen recent gains in that critical investment sector. French and German shares were higher overnight, but shares seemed to run out of upside fuel at some critical technical levels on the charts and that prompted some to suggest that the European markets are once again in need of fresh decisive action from ECB officials. US stocks managed to start out on a positive track today and the focus of the US trade this week, will be some upcoming housing numbers and a week ending US Durable goods report.
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