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OUTSIDE MARKET DEVELOPMENTS: While the US Dollar is showing some minor gains this morning, the Dollar remains within striking distance of its recent lows and that probably gives some gold and silver bulls hope in the early action today. However, with a slightly positive global equity market bias overnight and the global economic attitude this week mostly up beat, that seems to be lending ongoing support to both gold and silver prices. With a series of corporate earnings reports scheduled for release again this morning, the markets might have an offset to an anticipated rise in US initial unemployment claims figures early today. Later in the trading session, the markets will also be presented with existing home sales readings that are also expected to show a minor improvement. While the US government will release details of upcoming debt supply flow, the markets might not give that information much credence today. In general, the tone of the day could be set again by the direction in equities, which in turn might be dictated by the flow of quarterly earnings.
GOLD MARKET FUNDAMENTALS: Once again the gold market was presented with potentially undermining physical gold production news from a number of gold miners, but that news didn’t seem to be of much interest to the overnight trade. While US gold prices were showing a bit of negative divergence with silver prices in the early action today, it is possible that gold prices were gleaning some support from higher global equity prices and an ongoing up beat assessment of the economy from the UK Financial Services Authority Chairman. In a potentially negative development the gold trade in India seemed to balk at fresh purchases overnight as the currency adjusted price of gold approached a critical even number level on the charts. Some traders have suggested that the October gold contract has carved out resistance around the $956.5 level and that the market continues to need a definitive fresh low in the Dollar, or another upside extension in the equity markets to regain bullish momentum.
