Gold Settles $45.00 Lower... ($1594.80)

Another dramatic trading session as the precious metals continue to sell - off creating huge volatility and vast choppy ranges as traders and investors are forced to liquidate. The month of September has covered a range of $388.70 so far. On September 6th the December Gold contract traded another all-time high trading as high as $1923.70 and during Sunday's / Monday's overnight session the December contract traded as low as $1535.00. ...$388.70 break in just 20 days....AMAZING !

Investor and Trader fear of the global economic uncertainty was The fuel that began this mammoth sell-off. Obviously earlier this Month the U.S Dollar gained strength as the European Unions fragility pressured the Euro...WEAK EURO = STRONGER DOLLAR. Due to the technically overbought status the precious metal Began a death spiral taking out support levels and forcing the Execution of stop-loss orders in order to liquidate long positions..

Many traders began to take profits as a hedge against a global cash liquidity crunch..... And to really add fuel to the fire the CME GROUP once again raised margin requirements for the precious metals late Friday afternoon (9-23) ... MARGINS are monies traders and investors need to put up in order to trade and hold trading position...Traders who were undercapitalized were forced to liquidate their long positions...This decision from the CME helps to protect the exchange and decreases liability. It also sent the Gold market south in a hurry...Also helping the Sell-off has been the ever dropping price for Crude Oil....

Monday's Crude oil futures traded a new 6 week low....... Crude oil and Gold have a tendency to trade in the same direction... As always there are two points of view...Many traders feel the Gold market will continue to drop....Many others feel this a great buying opportunity....We have certainly gotten the needed correction that has filled in many technical pockets & gaps....During the 3 years of this huge rally we bought Gold because of the global uncertainty, geo-political tension, low investor confidence, as well as huge physical demand globally.....Other than a technical correction my question is WHAT HAS CHANGED ????

DECEMBER SILVER COVERED A $4.82 RANGE
SETTLING AT $29.97....

ECONOMIC DATA 9/27
CONSUMER CONFIDENCE.........9:00 AM. CST.............

MY SWING NUMBERS 9/27
DECEMBER GOLD
RESISTANCE # 2......................$1726.00
RESISTANCE # 1......................$1661.00
PIVOT......................................$1598.00
SUPPORT # 1..........................$1532.00
SUPPORT # 2..........................$1470.00
VOLUME..................................329,000

DECEMBER SILVER
RESISTANCE # 2......................$33.85
RESISTANCE # 1......................$31.91
PIVOT......................................$29.03
SUPPORT # 1..........................$27.09
SUPPORT # 2..........................$24.21
VOLUME.............................. ..98,000

Mike Daly / Gold Specialist
PFG BEST
mdaly@pfgbest.com
312-563-8029
877-294-4669

There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.