Today’s Gold trade offered some extreme volatility as traders tried to decipher all the global and domestic news including the unchanged posture by the FOMC and tonight’s State of Union Address from President Obama.

The world will be watching President Obama’s State of the Union Address as most experts agree it will be laden with economic and unemployment concerns.

Gold has been pressured by the recent U.S Dollar strength this has stemmed from several global financial concerns including (1) European Stock Markets trading lower over rising concerns of fiscal problems in Greece, Portugal, and Spain. (2) President Obama’s proposals to restrict U.S Banks on their lending procedures. (3) Concern over The Bank of China restricting their lending even further… just to name a few.

During this recent sell-off the popularity of gold certainly has increased in the Asian sector. Despite a stronger U.S Dollar (weaker Rupee) the jewelers of India are purchasing Bullion to satisfy the insatiable demand.

December sales of New Homes …DOWN 7.6%

**STATE OF THE UNION TONIGHT**

REPORTS 1/28

EXPORT SALES…………….….7:30 am (CST)
INITIAL JOBLESS CLAIMS……7:30 am (CST)

MY SWING NUMBERS 1/28 FEBRUARY GOLD

RESISTANCE # 2……..$1108.00
RESISTANCE # 1……..$1095.00
PIVOT…………………..$1090.00
SUPPORT # 1…………$1078.00
SUPPORT # 2…………$1072.00

Mike Daly / Gold Specialist