Compiled 08/10/11 6:00 AM ( CT ) Statistics: London Gold Fix $1,753.75 -$16.25 LME Copper Stocks 464,025 tons -675 tons GOLD MARKET FUNDAMENTALS: (6:00 AM CST) Clearly thegold marketbenefited from the FOMC news yesterday, as another new all time high was carved out ahead of the meeting and gold prices managed another rally attempt after the Fed statement was released. Apparently seeing the US Fed suggest that low interest rates will remain in place into 2013, struck many as inflationary and that in turn pushed some fresh money toward gold. Residual bullishness toward gold was also seen from a Chinese miner overnight, who predicted that gold prices were destined to rise to $1,900 an ounce in the wake of ongoing uncertainty in the US and Euro zone and that in turn indicates a high level of anxiety remains in place. Other forecasters have suggested gold prices should continue to rise because of the prospect of an ongoing weak pattern in the dollar, as a result of failed leadership and confusing policies in the US. In the end, the expectation of slowing US growth seemed to benefit gold yesterday and therefore the bull camp in gold seems to be embracing a wide range of issues. Comex Gold Stocks were 11.339 million ounces down 101,234 ounces. Stocks have declined 13 of the last 20 days. Comex Gold stocks are at the lowest in the past 10 readings. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CST) While equity markets in Asia and Europe were generally stronger during the overnight session, early indications are that US equity markets will open slightly lower later on today. The US Dollar is weaker against most of the major currencies this morning, although posting a large gain versus the Swiss Franc. A spokesman for the German government stated that there was no need to increase the European debt rescue fund as it currently is far from being exhausted. The Bank of England indicated that UK inflation will fall rapidly next year due to a weaker global economy. The Chinese Trade surplus during July was $31.5 billion, above market forecasts. German CPI during July was up 2.4% year-on-year, in-line with expectations. French Industrial Production during June was down 1.6%, weaker than forecasts. The second leg of the Treasury's refunding, the 10-Year Note auction, will have results announced at 12:00 PM. Major US economic numbers to be released this morning include June Wholesale Trade at 9:00 AM, and a private survey of mortgage applications released before the session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
