Compiled 09/26/12 6:00 AM (CT)

Statistics: London Gold Fix $1,763.75 -$3.00 LME Copper Stocks 220,525 tons +225 tons

GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While the environment isn't definitively "risk-off" today, the brunt of actively traded physical commodities are tracking lower to start today. Global equity markets mixed overnight, but the US equity markets in the early action were marking some time in positive territory. However, reports of disinterest by Indian gold bullion dealers overnight would seem to suggest that gold prices $150 an ounce above last months lows are being viewed by some Indian participants as unattractive. On the other hand, reports of fresh strikes in South African mining operations could provide some lift to gold, especially if those stories prove to be a sign of another wave of production problems. At least in the early action today, the gold market was facing slightly adverse currency market action and weakness in both energy and grain prices. It is also possible that gold will see some support from news of record holdings in a gold derivative instrument. Gold could have been emboldened earlier this week by stronger than expected US Consumer Confidence readings and also because of another rise in US home prices but instead the gold market remained somewhat flat footed. In short, the direction of US equities and news from the labor front in South Africa are likely to be the primary drivers of gold prices in today's US trade. Comex Gold Stocks were 10.897 million ounces down 142,394 ounces. Stocks have declined 12 of the last 20 days.

OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Chinese equity markets were weaker overnight, with cyclical and retail shares leading the way lower. In Europe, the markets saw fresh pressure from ongoing fears of slowing in the wake of slack forward guidance from several key multinational companies. Weak Italian retail sales figures for July and protests in Athens have also served to apply some pressure to the Euro and to the European equity markets. In the US action today, the market will see a new home sales report that is expected to show a minor gain and that will be followed just after mid session, by a speech from the Fed's Evans.

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