Golden Heights

This week in Gold has provided yet another all-time high as the U.S Dollar continues to have difficulties sustaining or maintaining any momentum. The Dollars performance versus the Euro, poor economic reports and the worlds move into hard assets have helped to fuel this mammoth Gold and Silver rally.
The CPI prices increased 0.3% for October. This translates to a higher cost of living for Americans. Higher fuel prices led the way.
Federal Reserve Chairman Ben Bernanke stated (11/16) “The focus on Fed’s dual mandate of price stability and Jobs growth will help the U.S Dollar to be strong”.
Freddie Mac reported “U.S fixed mortgage rates fell to near record lows” last week. The government tax credit for first time buyers are set to expire November 30.
U.S Jobless Claims: The Labor Department Reported: The number of U.S workers filing new applications for Jobless insurance was…UNCHANGED….
United States foreclosures and mortgage delinquencies rose again in the third fiscal quarter…
As always the closer you get to option expiration the volatility will increase. However the real volatility is being caused by the price of Gold! We are seemingly notching new highs on a regular basis and extremely over-bought and in severe need of a correction.
It appears to me that at the first signs of U.S Dollar strengths the gold bugs are taking profits in fear of an avalanche sell-off … But as long as economic news and a weak Dollar persist the Gold should continue to climb…
The Gold world is getting savvy…(in recent days) Investors are holding on to their longs longer and showing less panic off of U.S Dollar related good news …. They are beginning to see the U.S dollar as the world’s punching bag… The $ has not been able to sustain or maintain any rally momentum…. Until proven wrong expect this trend to continue….
The silver market is certainly benefiting from the Gold rally Silver is trading over $18.30 as of this writing. Many Silver analysts are predicting plenty of upside potential  …especially with the price of gold …silver may be the alternative of gift givers this Holiday season…
After India’s Central Bank purchased 200 metric tons last month (paying discounted price of $1040 per oz.) they may have created a support level floor… it has been reported that the jewelers of India are placing orders to purchase large amounts of bullion between the $1040.00 and $1060.00 levels in hopes of a dip in the price of Gold…….. 
Mike Daly / Gold Specialist

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