Compiled 08/01/11 6:00 AM (CT) Statistics: London Gold Fix $1,613.50 -$.25 LME Copper Stocks 466,025 tons -525 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While October gold at times this morning was trading as much as $28 an ounce below the recent highs, the market was able to reject a modest portion of the initial washout off news of the "deal". In typical US fashion, a US debt deal was cut under the cover of darkness and under the less intense press coverage of the weekend. With the spending cuts close to half the original speculation and the spending cuts scheduled to take place in a two step process, the overall austerity from the package is thought to be minimal. With only $1 trillion in immediate spending cuts in the weekend deal, the drag on the US economy might be limited. While the markets appear to be presenting a "risk on" environment many traders are taking a wait and see attitude for equities and certain physical commodity markets. Given the low to high rise last week in October gold of $33 an ounce and the July rally of $157 an ounce, some measure of back and fill action might be expected this morning, but since the overall credit standing of the US might not be improved significantly it is possible that gold prices will avoid aggressive liquidation pressures. It is also possible that gold traders today will turn their focus back toward strikes in South Africa, as that news was largely ignored last week. However, early indications are that some progress on resolving the strikes might be in the offing. Comex Gold Stocks were 11.432 million ounces down 707 ounces. Stocks have declined 12 of the last 20 days. Comex Gold stocks are at the lowest in the past 10 readings. The Commitments of Traders Futures and Options report as of July 26th for Gold showed Non-Commercial traders were net long 269,489 contracts, an increase of 6,426 contracts. The Commercial traders were net short 317,933 contracts, an increase of 9,890 contracts. The Non-reportable traders were net long 48,444 contracts, an increase of 3,464 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 317,933 contracts. This represents an increase of 9,890 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally stronger during the overnight session, early indications are that US equity markets will open with substantial gains later on this morning. The US Dollar is weaker against most of the major currencies this morning, although posting gains versus the Yen and Swiss Franc. Both houses of Congress are scheduled to vote today on an agreement to raise the US debt ceiling that was finalized over the weekend. The official Chinese Purchasing Managers Index was 50.7, higher than expectations but those readings showed some of the weakest readings in 28 months. A private survey of German manufacturing during July was 52.0, slightly below projections. Euro zone Unemployment during June was 9.9%, in line with forecasts. Major US economic numbers to be released this morning include the Chicago Fed's National Activity index at 7:30 AM, and June Construction Spending along with a private survey of US manufacturing during July at 9:00 AM.