Compiled 08/15/11 6:00 AM (CT) Statistics: London Gold Fix $1,738.00 -$17.00 LME Copper Stocks 460,600 tons -1,175 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market starts the new trading week out in the lower quarter of last week's trading range. While flight to quality fears off the Euro zone and US debt problems haven't gone away, the weekend seems to have ushered in a period of calm. Some traders are suggesting that an upcoming meeting between the German and French leaders is partially behind the choppy overnight trade in gold, but slack economic readings from Japan overnight might also have discouraged some buying of gold in Asia overnight. In looking forward, the gold trade in the US will probably see some reaction to the scheduled US data today but the trade might also see a noted reaction to a US Fed speech just after mid session. Apparently the gold trade wasn't overly interested in plans from a large gold miner (Newcrest Mining) who expects to see sharply increased gold production over the coming 5 years, perhaps because officials at that company also predicted higher gold prices ahead and indicated they had no desire to hedge their gold production. Comex Gold Stocks were 11.541 million ounces up 166,877 ounces. Stocks have declined 12 of the last 20 days. Comex Gold stocks are at their highest levels in the past 10. The Commitments of Traders Futures and Options report as of August 9th for Gold showed Non-Commercial traders were net long 259,183 contracts, a decrease of 30,067 contracts. The Commercial traders were net short 303,737 contracts, a decrease of 27,059 contracts. The Non-reportable traders were net long 44,554 contracts, an increase of 3,009 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 303,737 contracts. This represents a decrease of 27,058 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 moderate gains later on today. The US Dollar is weaker against most major currencies this morning, although posting a substantial gain versus the Swiss Franc. A German government spokesman said that the creation of "Euro" bonds will not be on the agenda at this week's meeting between German Chancellor Merkel and French President Sarkozy. Japanese GDP during the second quarter was down 0.3%, a smaller decline than market forecasts. Major US economic numbers to be released this morning include the NY Fed's Empire State Manufacturing survey at 7:30 AM, the Treasury Dept's International Capital Flows report at 8:00 AM, and a private survey of the US Housing Market during August at 9:00 AM. In addition, Fed Regional President Lockhart will give a speech during the session.
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