ANOTHER WILD RIDE !!!!!
GOLD SETTLES AT $1651.80 FOR THE WEEK......
ALSO THIS WEEK
* ANOTHER ALL-TIME HIGH..$1684.90
*GOLD TRADES A $76.70 RANGE
Today's December Gold Futures traded a very vast, choppy, and volatile $28.80 range as the traders and investors alike tried to decipher the global news in order to choose a trading strategy today..The Unemployment Data turned out to much better than expected..T he reading for the July Unemployment rate is DOWN one tenth to 9.1%.better than the projected 9.2%....... This number really set the tone for the day which was volatile !!!!
News from the European Union once again was very NEGATIVE for the world's markets...it's amazing ! it just seems like we are not getting the real story....One week the EU reports everything is fine and this week the citizens of Germany are fed up with supporting what appears to be the entire European Region....Today we learn that Ireland, Portugal, Spain. and Italy's economies are very fragile and in need of the ECB to step in and purchase their government Bonds..... This market is not for the faint of heart....The volatility the choppiness, and the healthy volume make this a "Gold Bugs" dream come true !!!
Thursday's December Gold futures contract notched another all-time high trading $1684.90 before experiencing an avalanche type sell-off and trading as low as $1642.20 late in the session. The Gold market covered a very choppy, volatile, and almost surreal $42.70 trading range. The market was supported early on by the news that the Bank of Japan intervened in the currency market selling An undisclosed amount of Yen to prevent it from trading new highs ...News from the European Union was very discouraging because just two weeks ago in which a deal intended to ease the regions debt crisis and add stability apparently is not working according to European officials...They are for FUNDS to beef up the regions bailout fund.
European Central bank President Jean-Claude Trichet expressed concern The regions sovereign-debt crisis spreading to larger economies and Bond markets...This news rallied the U.S Dollar and caused a profit taking / Margin call sell-off.... There are rumors that the CME will look at raising Margin requirement on the 100 oz. contract... I am still a believer that there is a strong underlying support in the Physical buyers (India's Jewelers) as well a s investors who will continue to use Gold as their "safe haven' alternative investment of choice....
Many Traders and investors may look at this recent sell-off as a "Bargain Buying" opportunity....We gold bugs are well aware that this Gold market is hugely "OVERBOUGHT" and will react top heavy when "bearish Gold news" is revealed.....However, the resiliency of the market Is very well documented.....
Wednesday's December Gold Futures notched another All-time high as it traded a high of $1675.90........ The day session covered a range of $21.50 as traders and investors alike continue to use both Gold and Silver as their "safe haven" alternative investment choice. Traders continue to chart unchartered territory and despite knowing how technically overbought this market is.... However, until the world's economic climate changes I feel savvier investors will continue to trade the trend. We are inching ever closer to the wedding and festival season in India and China and I suspect if history is any indication that the demand for both Gold and Silver will be huge boarding on insatiable causing the jewelers to stock and then re-stock in order to meet demand.....Wedding season begins in September. I believe many traders are awaiting the big UNEMPLOYMENT DATA due to be released Friday 8/5 at 7:30 AM CST........
The U.S Senate passed the raising of the U.S Debt ceiling bill as expected. Fitch rating services anticipated the bill passage and concluded that the United States should retain its AAA rating.... The biggest fuel to today's mammoth Gold rally was the news That the South Korean central Bank purchased 25 tons of Gold It was South Korea's first Gold purchase since 1998. The 25 ton purchase brings their reserves up to 40 tons... These High Gold prices are slowing physical demand somewhat however, with the wedding and festival season in India and China less than a month away I expect the demand to increase significantly no matter where the yellow metal is trading..... despite lower Crude oil prices today the Gold market continues to be the "safe haven" choice for world investors.... As we know historically Gold and Silver retain their value Better than most commodities during times of uncertainty.... President Obama has certainly been subject to "baptism by fire"... I recently looked to see where Gold was trading on Obama's Inauguration day...On That day Gold was trading around $890.00... Also despite these high prices I would not be surprised to see other Central banks follow South Korea in purchasing physical bullion to add to their reserves.....
Today's Gold session covered a choppy and volatile $26.30 range as U.S legislators announce they are in agreement to raising the U.S Debt ceiling. All that remains is passing vote (tonight) to send it to the President for his signature. The initial news of a n agreement sent December Gold Futures tumbling as low as $1608.20 before actually coming all the way back to trade as high as $1634.50 just a few dollars of all-time highs... The market eventually took profits prior to tonight's vote and settling $9.50 LOWER for the session....
POSSILE YEN INTERVENTION :
Nikkei running a second story now that says the US, Japan and European monetary authorities conducted a conference call Saturday, during which Japan is said to have alerted its counterparts of their "grave concern" over recent yen movements and of their intention to conduct yen selling intervention. "The U.S. responded that all available measures should be used to stabilize the currencies," Nikkei says, and then concludes that this could leave the possibility of coordinated intervention.
As you can see the news this week was very noteworthy and helps to explain the wild ride this week! Trade smart ! And always remember "THE MARKET IS ALWAYS RIGHT "..... Have a great weekend !!!
MY SWING NUMBERS FOR MONDAY 8/8
RESISTANCE # 2.................$1685.00
RESISTANCE # 1.................$1668.00
SUPPORT # 1.....................$1640.00
SUPPORT # 2.....................$1627.00
RESISTANCE # 2..................$40.87
RESISTANCE # 1..................$39.53
SUPPORT # 1......................$37.22
SUPPORT # 2......................$36.22
Mike Daly / Gold Specialist
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