GOLD SETTLES $14.10 LOWER... ($1668.70)

December Gold Futures traded a $31.80 range as traders and investors continue to monitor the European Union as well as the global data. Lower Crude Oil prices helped pressure lower gold prices today as speculators may have taken profits in the Gold and Silver today. Minutes released from the FOMC are pointing to a possibility of a Quantitative Easing 3.... Once again then FOMC stated the obvious problems In the United States economy..But varied on the best or the most appropriate ways to deal with them....

Here is a passage from the FOMC Minutes :

Meeting participants expressed a range of views on the potential efficacy of policy tools tied to the size and composition of the Federal Reserve's balance sheet. Many judged that these policies could provide additional monetary policy accommodation by lowering longer-term interest rates and easing financial conditions at a time when further reductions in the federal funds rate are infeasible. However, a number saw the potential effects on real economic activity as limited or only transitory, particularly in the current environment of balance sheet deleveraging, credit constraints, and household and business uncertainty about the economic outlook. Participants noted that a SOMA maturity extension program would not expand the Federal Reserve's balance sheet or the level of reserve balances, and that the scale of such a program was necessarily limited by the size of the Federal Reserve's holdings of shorter-term securities so that it could not be repeated to provide further stimulus. A number of participants saw large-scale asset purchases as potentially a more potent tool that should be retained as an option in the event that further policy action to support a stronger economic recovery was warranted. Some judged that large-scale asset purchases and the resulting expansion of the Federal Reserve's balance sheet would be more likely to raise inflation and inflation expectations than to stimulate economic activity and argued that such tools should be reserved for circumstances in which the risk of deflation was elevated. In commenting on the implications of a maturity extension program or another large-scale asset purchase program, several participants noted that the System should avoid holding a very large proportion of the outstanding stock of longer-term Treasury securities in its portfolio because the result could be a deterioration in market functioning.

A number of participants suggested directing some purchases or reinvestments into agency MBS; however, a couple of participants saw such actions as unlikely to have benefits, or as a form of credit allocation. The United States Department of Labor released

The Initial Jobless Claims as 404,000. This was expected to be 405,000.....

DECEMBER SILVER traded a $1.12.2 range and settled at $31.66.7 for the session.....

MY SWING NUMBERS FOR 10/14
DEECEMBER GOLD
RESISTANCE # 2..............$1702.00
RESISTANCE # 1..............$1686.00
PIVOT ..............................$1670.00
SUPPORT # 1...................$1653.00
SUPPORT # 2...................$1639.00
VOLUME .........................$98,000

DECEMBER SILVER
RESISTANCE # 2...............$33.09
RESISTANCE # 1...............$32.49
PIVOT ..............................$31.97
SUPPORT # 1...................$31.14
SUPPORT # 2...................$30.85
VOLUME .........................26,000

Mike Daly / Gold Specialist
Research Division
PFGBEST.com
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.