Compiled 04/28/11 6:00 AM (
) Statistics: London Gold Fix $1531.00 +$23.00 LME Copper Stocks
463,650 tons +150 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST)
With another round of new all time highs posted overnight, the
gold trade comes into the Thursday US trade with a bullish bias.
In addition to a steady but dovish stance at the US Fed, the gold
trade is also benefiting from a sharp range down extension in the
US Dollar. With all the focus on US monetary policy this week,
the gold market seems to have drifted away from the flight to
quality focus on the precarious US debt situation but that issue
could still be contributing to the latest rise to new all time
highs. In general, the gold market should expect to see mostly
positive economic data flow from the US today, but the Dollar
hasn't shown much in the way of positive reactions to data
recently, perhaps because US policy holds a dominating position
in the minds of many gold traders. However, with the Treasury
markets depicting inflationary concerns in the overnight action
of the yield curve, it is possible that favorable US economic
readings this morning will simply stoke inflation fears, as the
Fed has made it clear that QE2 will run its full course and that
the US might not change policy for another 2 or 3 Fed meetings.
Comex Gold Stocks were 11.035 million ounces up 2,177 ounces.
Gold stocks have declined 12 of the last 20 days. OUTSIDE MARKET
DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia were
mixed during overnight trading, stock indices in Europe are
generally higher this morning. Early indications are for US
equity markets to open today's session with slight gains. The
Dollar is weaker against most of the major currencies during
overnight trading. The Bank of Japan kept Japanese rates
unchanged at today's meeting, but lowered growth forecasts due in
main part to the effects of last month's earthquake. China's
population rose to 1.34 billion people during 2010, nearly half
of which now live in urban areas. Japanese CPI during March was
down 0.1% year-on-year, a smaller decline than expectations.
Japanese Industrial Production during March was down 15.3%,
weaker than projections and a record one-month decline. The
German Unemployment during April was 7.1%, unchanged from last
month but higher than expectations. Major US economic numbers to
be released this morning include Weekly Jobless Claims and 1st
quarter GDP at 7:30 AM, and a private survey of Pending Home
Sales at 9:00. The final leg of the Treasury's monthly refunding,
the 7-year note auction, will have results announced at 12:00 PM.
In addition, Fed Regional President Lockhart and Fed Governor
Duke will speak during the session.