Compiled 08/17/11 6:00 AM (CT) Statistics: London Gold Fix $1,792.00 +$13.00 LME Copper Stocks 464,625 tons -650 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) With another new high for the move overnight, the gold market continues to feed higher off Euro zone uncertainty and to a certain degree off ongoing fears of slowing in the US. It is possible that gold is drafting positively off ongoing political jousting in the US press, as the 2012 US Presidential campaign has put the question of taxes and spending in a front and center position. Gold could have been held back overnight by news of soft inflation readings from the Euro zone, but apparently the market sees the lack of fresh moves from the French/German meeting yesterday, as a more significant development this morning. Surprisingly Euro and Swiss currencies remain strong and on the verge of upside breakouts on the charts this morning and that could lend gold some currency related support. The trade doesn't expect a significant reaction to the US PPI report this morning, as that report is likely to be seen as a measure of growth or lack of growth instead of a measure of inflation, especially with Euro zone inflation readings overnight coming in somewhat soft. With the President refusing to call Congress back into session to act on the debt problem, it is possible that gold will generally see campaign rhetoric as a sign that political gridlock in Washington remains in place. It is also possible that gold will garner some periodic support ahead, as the Vice President's visit to China has already prompted China to express concerns for its dollar denominated investments. Comex Gold Stocks were 11.533 million ounces down 37,363 ounces. Stocks have declined 12 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally weaker this morning. Early indications are that US equity markets will open near unchanged levels later on today. The US Dollar is weaker against most of the major currencies this morning, although posting a moderate gain versus the Pound. The Swiss National Bank announced fresh liquidity measures to weaken their currency but did not initiate a "peg" versus the Euro. China announced plans to allow foreign investors to use the Yuan to buy Chinese securities. UK Unemployment during July was 7.9%, higher than market expectations. Euro zone CPI during July was 2.5% year-on-year, in-line with forecasts. Major US economic numbers to be released this morning include the July Producer Price Index at 7:30 AM, and a private survey of mortgage applications released before the opening. In addition, Fed Regional President Fisher will give a speech during the session.
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