Morning Gold Market Report

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Compiled 04/10/12 6:00 AM ( CT ) Statistics: London Gold Fix $1,643.75 LME Copper Stocks 268,400 tons +3,625 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) While there continues to be hope that either China or the US will step up and provide some additional economic stimulus, that issue isn't thought to be a front burner potential in the coming session. While some traders continue to fear periodic threats of global slowing and that in turn has periodically pulled support from under physical commodities like gold, there is hope that last Friday's numbers has already caught the Feds attention. With four straight sessions of lower global equity market action, the global slowing threat was accentuated and that probably increases the attention on upcoming Fed dialogue. However, today the US equities look to break the recent trend of weaker equity market action, but that potential supportive outside market action might be tested, if a series of US Fed speeches today, fails to produce some dovish policy dialogue. In other words, many markets like gold will be parsing the Fed's commentary today, in search of a softening in the Fed's somewhat hawkish tone, that initially surfaced in the last FOMC meeting minutes release. Another development that might limit the upside in gold prices today, is news that Chinese gold production for the month of February rose by 11% over the prior month. However, that potential negative is probably countervailed by ongoing ideas that Chinese gold demand, has generally continued to grow and that growth is expected to soak up the added domestic gold supply. Comex Gold Stocks were 11.148 million ounces down 168,787 ounces. Gold stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) Asian equity markets were mixed overnight, with the markets surprised by a positive Chinese Trade surplus reading. Apparently a pick-up in overseas demand countervailed slack domestic demand in China. The European markets were still generally off balance, because of last week's soft US payroll report and also because of residual slowing fears in China, in the wake of their monthly trade balance figures that showed a softening of domestic demand. From the US scheduled report front today, the market will see weekly private US chain store sales figures, US Wholesale trade and a flurry of Fed speeches throughout the trading session. Also due out today are the results of a US 3 Year Note auction at mid day and traders will also see a World Ag Supply and Demand estimate report which in turn could have some indirect impact on metals and other physical commodity prices.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities

Referenced Stocks: CT

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