Credit: Shutterstock photoCompiled 08/04/11 6:00 AM ( CT ) Statistics: London Gold Fix $1,664.25 -$2.75 LME Copper Stocks 465,325 tons -525 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Thegold marketrecently has benefited from fears of US slowing, fears of a US debt downgrade and yesterday from hopes of fresh QE from the US. In other words, gold prices have clearly benefited from a series of anticipated events and that could make this week's high a somewhat lofty price zone unless some anticipated events become reality. Thegold marketmight have seen some support for prices overnight in the wake of a rather lofty price forecast from a gold mining company executive, who suggested that gold could eventually reach $2,000 an ounce! Thegold marketwas also presented with a private estimate of gold reaching $1,800 an ounce by this time next year and therefore the speculative tilt toward gold this morning seems to favor the bull camp again. On the other hand, gold might be undermined by suggestions from a noted futures analyst, who predicted gold might have temporarily peaked. However, thegold marketmight be partially undermined by action in the currency markets this morning, as the BOJ intervention overnight has temporarily boosted the greenback. With thegold marketrecently benefiting from signs of US slowing, a portion of the trade probably expects to see some fresh buying interest off US scheduled data later this morning. Comex Gold Stocks were 11.433 million ounces down 579 ounces. Stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were mixed during the overnight session, early indications are that US equity markets will open with moderate losses later on this morning. The US Dollar is stronger against most of the major currencies this morning perhaps primarily because the Bank of Japan intervened in the currency markets during overnight trading by selling over 1 trillion Yen against the Dollar. The Bank of England will announce their decision on UK monetary policy at 6:00 AM. The European Central Bank will also announce their decision on Euro zone monetary policy at 6:45 AM. The only major US economic number to be released this morning will be Weekly Jobless Claims at 7:30 AM.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
