DECEMBER GOLD SETTLES $28.50 HIGHER TODAY... and settles at $1788.10 for the week............
Today's gold market ended the week strong after selling off the past two sessions. This week produced a $65.80 trading range as the week's economic data had traders liquidating long positions after failing to break through the $1805.00 resistance level and failing to hold the psychological $1800.00 level. The December Futures contract trade as low as$1736.60 on Thursday and provided a bargain buying opportunity as savvier investors are still choosing the precious metals as their safe haven' currency of choice.... Today's veterans Day trade certainly had a Holiday feel ! The volume was very light in spite of a $28.50 rally.... Today's December contract covered a $44.40 trading range trading a HIGH of $1789.40 and a LOW of $1745.00.....
Noteworthy News This Week:
The weekly report on Initial Jobless Claims is 390k This was expected to be 400k. Bernanke is speaking to a group of soldiers and their families. Says Fed focusing intently on supporting job growth unemployment rate remains painfully high US economic problems are very serious inflation appears to be moderating Inflation likely to stay close to 2% or less Economy may have 5 to 6% unemployment without inflation Fed shouldn't carry whole burden to ensure prosperity
The crisis in Italy is at the breaking point according to German Chancellor Angela Merkel. Merkel claims that The plight of Europe was so unpleasant that deep structural reforms were needed quickly. Adding the rest of the world would not wait and That will mean more Europe, not less Europe.... The ECB is actively buying bonds in Italy.... The probability of the ECB printing more EURO'S is growing.
The fragility in the European Union continues and investors continue to choose Gold as their safe haven currency of choice. Today we learned that the Italian Prime Minister Silvio Berlusconi will step down once the new budget law is approved with the appropriate amendments demanded by the partners of the European Union. It appears his resignation was forced by Italy's President Giorgio Napolitano .... President Napolitano stated Berlusconi was aware of the consequences of a vote in parliament on Tuesday in which his center/right coalition failed to secure a majority in the lower house....
Following was an article from Catholic Online :
Critics say Berlusconi was among the chief reasons for the financial attacks on Italy. Dogged by scandal, Berlusconi is on trial for corruption, tax fraud and paying for sex with a minor. Critics say Berlusconi has worn away what had been left of his international credibility. After months of parliamentary deadlock, Berlusconi has shown that he does not have the political backing to push through the measures that are required of Italy to remedy its financial ills.
There is a sense of relief at least for now that Greece will remain a member of the European Union and the nation will form a new united Government which will force the present Financial Minister George Papandreou to resign. His successor is expected to be former vice President of the ECB and President of the Bank of Greece - Lucas Papademos.... Mr. Papademos will inherit a debt ridden nation in need of a financial overhaul.... Gold speculators are also concerned with the fragility in Italy and worry about a contagion chain reaction throughout the Euro Region..... As we Gold bugs are aware during times of economic stress investors globally choose Gold and Silver as they historically retain their value better than most commodities ..... Until investor confidence grows I expect these choppy and volatile ranges to continue!
MY SWING NUMBERS FOR 11/14
RESISTANCE # 2...............$1818.00
RESISTANCE # 1...............$1803.00
SUPPORT # 1.....................$1759.00
SUPPORT # 2.....................$1730.00
Mike Daly / Gold Specialist
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