Daly Gold Report

Gold Settled $8.20 Higher Today… ($1162.20)
Today’s gold market traded adversely to its normal indicators. Despite a very strong U.S Dollar, lower energy prices, and a weaker silver market the gold rallied to close $8.20 higher. This rarity can be directly linked to the continued debt crisis occurring in the European Union. Just when we thought there might be light at the end of the tunnel their debt crisis worsened as Greece along with Portugal had their credit rating downgraded. Standard & Poor’s cut Greece’s credit rating to “junk bond” status stating ” Our updated assumptions about Greece’s economic and fiscal prospects lead us to conclude that the sovereign’s creditworthiness is no longer compatible with an investment grade rating”. Before Greece can receive activation of the 45 billion Euro aid package it needs to satisfy Germany’s concerns. Since Germany will be contributing the lion’s share it is certainly not unreasonable for them to request more stringent debt cutting measures from Greece.
European Union debt crisis part 2:
European Union’s poorest country Portugal had its credit rating cut from A+ to A- as Standard & poor’s stated ” The outlook was negative”. Investors have ranked Portugal debt status as the eighth “riskiest’ in the world… Despite a plea from Portugal’s Prime Minister Jose Socrates’ to investors “his country will avoid Greece’s fate” the reality is
Portugal’s economy is dependent on tourism and its annual economy has only been increasing less than 1 percent . This makes attracting investors rather difficult….
The Europeans have been and continue to be buyers of Gold as a flight to safer havens. The investor mentality appears to be to disregard the volatility of the world’s fiat currencies and move to precious metals in times of crisis. There certainly is no perfect hedge, however gold usually retains value better than most commodities.
Goldman Sach’s has been in front of a senate Hearing all day. The industry giant is trying to defend its action and reputation regarding fraud charges filed against them by the Securities and Exchange Commission. Investors globally will be eyeing the proceedings as many are frustrated with the Wall St. drama.
CONSUMER CONFIDENCE among U.S Consumers reached Its highest level since September 2008…..
REPORTS : 4/28 Wednesday….** FOMC MEETING ** (day 2)
RESISTANCE # 2…………….$1177.00
RESISTANCE # 1…………….$1169.00
SUPPORT # 1………………..$1151.00
SUPPORT # 2………………..$1140.00
Mike Daly / Gold Specialist


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