Compiled 06/22/12 6:00 AM (CT) Statistics: London Gold Fix $1,570.50 -$29.50 LME Copper Stocks 252,975 tons +825 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) After seeing a fresh new low for the move overnight August gold has managed to recover some minor ground and therefore it looks to start the US Friday action above the prior session's close. However, August gold this morning looks to start the final session of the week, still sitting roughly $63 an ounce below this week's highs. With the gold market earlier this week seeing predictions of a decline in Indian gold imports and the Indian Finance Minister overnight confirming a decline in April and May gold imports, the gold market shouldn't be definitively undermined, especially since high prices and a gold import duty were expected to dent Indian imports. Also for most of May gold prices were as much as $100 an ounce below the levels seen in April and at times in May gold prices were as much as $375 an ounce below the 2012 highs. Therefore some analysts expect gold imports in India to improve or stabilize especially in the wake of the end of the Indian import tax. As of June 12th the Non-reportable and Non-commercial combined net long position in gold was 161,000 contracts and with the gold market declining roughly $42 an ounce into the early trade this morning, it is likely that gold has been taking down its speculative long positioning. In fact, given the definitive slowing/deflationary environment in place yesterday, it would appear that many weak handed longs have been pushed to the sidelines. With a thin US report slate today and EU meetings capturing some headlines, the bear camp might not have as many headlines working in their favor today. On the other hand, the bull camp doesn't appear to have a definitive prospect of near term central bank easing to present today but seeing US equities start out higher probably tempers yesterday's patently bearish overall environment. Comex Gold Stocks were 11.064 million ounces up 1,896 ounces. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) The Nikkei was lower overnight in the wake of big losses on Wall Street yesterday, which in turn were the result of the Moody's downgrade. While Shanghai was closed, the Hang Seng and other Asian equity market measures were uniformly weaker off the US Thursday developments and they were also weaker because of renewed European slowing fears. European equities were weaker this morning, with investors concerned about a softer than expected German Ifo reading, but the markets might have seen some support from an E4 meeting. The US scheduled report slate is mostly empty today, with the exception of a weekly 3rd or 4th tier economic activity index from the Economic Cycle Research Institute. Surprisingly, the US equity markets were showing early positive action in the wake of the very hard day down yesterday and that probably serves to temper deflationary/slowing vibes that were clearly in place at times on Thursday.
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