Compiled 08/03/11 6:00 AM (CT) Statistics: London Gold Fix $1,667.50 +$43.50 LME Copper Stocks 465,850 tons +225 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) October gold prices overnight clawed out another new all time high of $1,675.30 and the trade generally held a large portion of that rally into the early US Wednesday trade. Apparently gold garnered some additional flight to quality buying interest off the news that a lesser known Chinese rating agency cut the US rating one notch and perhaps some buyers were motivated overnight off ongoing economic and political turmoil in Italy. Gold also seems to be capable of benefiting from evidence of slower growth in the US, as that apparently increases the overall macro economic uncertainty in the marketplace. Once again, gold showed very little interest in overnight news of an increase in gold production from a large Chilean minor, as the focus of the gold trade remains locked onto flight to quality type issues. Apparently the gold market gives little credence to the prospect of a higher US equity market opening today. It did seem as if gold rose in the wake of evidence of slowing from the US yesterday morning and while private jobs readings this morning might provide a temporary improvement in some economic viewpoints that sentiment is likely to be erased quickly in the wake of Factory orders and the ISM Non manufacturing readings. Some gold traders think the Chinese concerns over US Treasury market volatility, are simply destined to increase interest in gold directly ahead. Just to add in another bullish theme, it should be noted that some Asian gold traders are starting to anticipate increased seasonal buying from India. Comex Gold Stocks were 11.433 million ounces down 643 ounces. Stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally weaker during the overnight session, early indications are that US equity markets will open with moderate gains later on this morning. The US Dollar is weaker against most of the major currencies this morning, although posting a strong gain versus the Swiss Franc. The Swiss National Bank unexpectedly cut that nation's benchmark interest rates this morning. The Italian Finance Minister met with the head of Euro zone finance ministers for emergency talks. Euro zone Retail Sales during June were up 0.9%, higher than expectations. A private survey of Euro zone service industries was 51.6, slightly higher than forecasts. Major US economic numbers to be released this morning include private surveys of US employment and US job cuts released before the opening, and June Factory Orders as well as a private survey of US non-manufacturing industries will also be released at 9:00 AM.
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