Morning Gold Market Report for 4/18/2011

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April 19, 2011 12:37 AM EST

Compiled 04/18/11 6:00 AM (CT) Statistics: London Gold Fix $1484.50 +$12.00 LME Copper Stocks 451,775 tons +1,350 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) The gold market initially saw a new all time high move but the market was unable to sustain that push higher. Apparently renewed concern toward the Euro zone sovereign debt threat is a limiting item for gold prices this morning, as gold prices appear to be set to waffle around both sides of unchanged into the early US Monday trade action. The gold market was probably knocked somewhat off balance by another Chinese tightening move and perhaps the market was also pressured by noted weakness in oil prices. Another element that might have gold somewhat off balance is a modest bounce in the Dollar. The bull camp will probably embrace the initial new all time high move overnight and in turn suggest that a US housing number later in the trading session will increase macro economic uncertainty and potentially undermine the US Dollar. The gold market might garner some support from initial positive action in silver and copper prices, especially if the press continues to tout the prospect of another expansion of the US debt ceiling. Comex Gold Stocks were 11.084 million ounces down 582 ounces. Stocks have declined 11 of the last 20 days. The Commitments of Traders Futures and Options report as of April 12th for Gold showed Non-Commercial traders were net long 228,893 contracts, a decrease of 1,865 contracts. The Commercial traders were net short 283,182 contracts, a decrease of 3,909 contracts. The Non-reportable traders were net long 54,289 contracts, a decrease of 2,043 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 283,182 contracts. This represents a decrease of 3,908 contracts in the net long position held by these traders. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally lower this morning. Early indications are for the US stock market to open today's session with moderate losses. The Dollar is stronger against most of the major currencies during overnight trading, although posting a loss versus the Yen. A daily newspaper in Greece said that nation had told the IMF and the EU that it wanted to restructure its debt. China raised bank reserve requirements by 0.50%, the fourth increase this year and the second within two weeks. The only major US economic numbers to be released this morning is a private survey of the US Housing Market during April at 9:00 AM.

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