This week the gold market traded a $31.60 range as the economic climate of the globe continues to fuel the resiliency of gold as traders and investors alike continue to monitor the fragility of the European Union, Libya and the Middle-east, China, and the Unemployment and housing sector here in the U.S. Obviously the European Union has many investors seeking “safe haven’ alternative investing as the debit crisis in the region has savvier investors choosing gold as their currency of choice. The EU finance ministers have apparently drawn a line in the sand regarding Greece as they are demanding tougher austerity measures before releasing bail-out cash to the nation of Greece. This situation remains critical and has certainly revealed conflicting reports all week.
Many Gold bugs continue to expect further rate hikes from China’s “Peoples Bank of China as the historically high inflation has been a drag to the Chinese economy.
The following are highlights from this week’s Gold reports:
Wednesday it was reported that Greece’s Prime Minister George Papandreou was set to resign. Today he is committed to establish a new government and stated he would not resign. His Government has been scrutinized and criticized over Greece’s austerity measures which is the requirement to meet the conditions laid out by both the European Union and the (IMF) International Monetary Fund as part of their 110 Billion Euro bail-out.
Thursday:
Prime Minister George Papandreou newsworthy quotes:
“The challenge before us, the moment we are facing. Is historic. Either Europe will make history or history will wipe the European Union.” “It is time to fight for Greece” he also stated that the latest Rating cuts to CCC from B “makes Greece the most risky nation In the world”……and calls for “Unity for Greece”.
Obviously this crisis bears watching !!!!
The U.S department of labor announced the Initial Jobless claims to be 414,000…this was 6,000 better than predicted by analysts.
Monday:
Monday S&P downgraded Greece’s credit rating from “B” to “CCC” while stating the outlook looked “NEGATIVE”.
Commentary:
Despite a huge drop in Crude Oil as the July futures contract traded as low as $91.84per barrel this week Gold continues to remain resilient as investors are still using it as a safe haven investment.
Today’s trade was very choppy as it appeared that traders were liquidating position as the momentum changed from upside to downside several times during the session. This indicates to me the total feeling of uncertainty amongst the trading community. Clearly traders are waiting for clear indicators prior to making their trading strategies ….Stay tuned !
MY SWING NUMBERS FOR MONDAY 6/20
AUGUST GOLD
RESISTANCE # 2……………..$1555.00
RESISTANCE # 1……………..$1547.00
PIVOT……………………………$1535.00
SUPPORT # 1…………………$1535.00
SUPPORT # 2…………………$1515.00
JULY SILVER
RESISTANCE # 2……………..$36.52
RESISTANCE # 1……………..$36.14
PIVOT……………………………$35.53
SUPPORT # 1…………………$35.14
SUPPORT # 2…………………$34.54
Mike Daly
Gold specialist / Gold Specialist
PFG BEST
312-563-8029
877-294-4669
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