Fri 08 Mar 2013 16:35:00 CT
Compiled 03/07/12 6:00 AM (CT)
Statistics: London Gold Fix $1,682.50 -$3.00 LME Copper Stocks 280,900 tons -2,675 tons Shanghai Copper stocks +5,401 tons to 221,487 tons
GOLD MARKET FUNDAMENTALS: (6:00 AM CST) It would appear that gold is facing a slightly improved overall market environment this morning. While Asian stocks were still weak overnight, the general trend in the rest of the world was for higher equities and that seems to have provided gold and other physical commodity markets with some initial support. It also seems as if the gold trade is slightly less concerned with the upcoming Greek debt swap situation, as some European financial institutions overnight indicated they would be participating in the swap. While gold hasn't paid that much attention recently to minor supply side threats lately, news of a 1 day strike in South Africa could be providing the bull camp in gold with a minor assist this morning. Apparently South African Gold Fields saw as much as 85% of its workers fail to report to work today and that strike also impacted platinum and coal production. News that Brazil might be poised to cut interest rates might be another positive for gold today, especially if the outlook for the global economy remains positive. Another issue that might provide fresh support to gold prices is news that a German debt offering overnight managed to record the lowest yield in recorded history. In the end, the private jobs report from the US this morning is likely to impact the gold trade this morning. After such a massive decline in price yesterday and given the rather aggressive washout seen since the late February highs, the gold market was probably short term oversold around the prior session's lows. However, it would not seem like the markets are poised to shift back into a full risk-on posture, unless talk toward the Greek debt swap situation improves markedly and US data shows stronger than expect results today. Comex Gold Stocks were 11.419 million ounces up 4,131 ounces. Gold stocks have declined 11 of the last 20 days.
OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asia equity markets were lower overnight, with ongoing fears of slowing still present in that region. European equity markets were mostly higher overnight off signs that some key financial players planned to participate in the upcoming Greek debt swap. US equity markets were showing some minor recovery action early today but that action seemed to be primarily technical in nature. The US economic report slate today remains somewhat thin, with a private payrolls forecast due out early and a Consumer credit reading due out later in the trading session. Expectations generally peg the private jobs report to post a gain in jobs in excess of 200,000. The trade also generally expects to see a rather noted jump in US consumer credit, which in turn might point to building confidence in the US economy but news that could also prompt talk that the US recovery is at least partially being fed by unsustainable credit.
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