Resiliency and Volatility Reign…

This week the December Globex market   

covered a $39.10 range as global investors

waffle over the world economic climate.

During this week it became apparent that

the gold market had crept into technical

over-sold status around the $1160.00 level.

The price dip renewed interest in the buying of

physical bullion from investors globally.

There was certainly a huge buying surge

between $1160 and $1170 from the Asian

sector especially from the Jewelers of India.

It appears that the Jewelers of India are

actively buying bullion in preparation for

their upcoming Wedding and festival seasons

beginning in September and lasting through

December. It is thought that 12% of all Gold

refined in the history of the world is in the

households of India. We do know they are the

world’s largest gold consumers and purchase

approximately 20% of the world’s Gold annually.

Early in the week it appeared investors were

showing confidence in the world’s economy as

they were selling gold and moving into the

Global equity markets as an alternative investment.

However, after mixed economic data it has become

evident that the appeal to own Gold is back!

Especially when you are getting this type of input

from Members of the Federal Reserve….

*St. Louis Federal Reserve President James Bullard

suggested the federal reserve should buy more Treasury

Securities if inflation dips lower instead of continuing to

It’s pledge to keep interest rates low for an extended period.

Ballard added that the United States is closer than it has

ever been to JAPAN-LIKE DELATION…..

*Dallas federal Reserve Bank President Richard Fisher

delivered a speech in San Antonio and stated his concern

the economy “will be sailing forward at a suboptimal speed”.

FISHER LASHED OUT AT Washington’s Legislators for

drafting health –care and other laws which he thought

forced business to the side-lines…

The news once again revealed the severity of the housing sector:

According to (Market Watch & Realty Trac Inc). the trend for the

Nation’s foreclosure crisis is worsening as high unemployment,

slow job growth, and an uneven rebound in home prices continue

to fall behind on their mortgage payments….

When investors hear news like this it causes a lack of

confidence in fiat currencies and savvier investors choose

“safer havens’ and tangible assets such as Gold ,Silver, and Diamonds.

This recent price dip has made gold more appealing than one

month ago and has helped give Gold some traction.

Also this week the Chinese Chief Currency regulator

Announced that China has surpassed Japan to become

the world’s SECOND largest economy behind only the

United States…..China is the world’s number one

producer of Gold and number two consumer.

Inflation or Deflation ? it does not seem to matter…

It is my belief investors understand that the precious

metals have a history of retaining their value better

than most other commodities in times of crisis….

FRIDAY 7/30 DECEMBER GOLD SETTLED AT…..$1183.90

MY SWING NUMBERS FOR MONDAY 8/2….DECEMBER GOLD…

RESISTANCE # 2………………..$1197.00

RESISTANCE # 1………………..$1190.00

PIVOT……………………………….$1179.00

SUPPORT # 1…………............$1172.00

SUPPORT # 2…………………….$1161.00

Mike Daly / Gold Specialist

PFG BEST

mdaly@pfgbest.com 

877-294-4669

312-563-8029

312-775-3014

*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, AND FOREX*