Gold Settles $7.30 Lower... ($1659.00)

Today's December Gold futures contract notched another all-time high trading $1684.90 before experiencing an avalanche type sell-off and trading as low as $1642.20 late in the session. The Gold market covered a very choppy, volatile, and almost surreal $42.70 trading range. The market was supported early on by the news that the Bank of Japan intervened in the currency market selling An undisclosed amount of Yen to prevent it from trading new highs ...News from the European Union was very discouraging because just two weeks ago in which a deal intended to ease the regions debt crisis and add stability apparently is not working according to European officials...They are for FUNDS to beef up the regions bailout fund. European Central bank President Jean-Claude Trichet expressed concern The regions sovereign-debt crisis spreading to larger economies and Bond markets...This news rallied the U.S Dollar and caused a profit taking / Margin call sell-off.... There are rumors that the CME will look at raising Margin requirement on the 100 oz. contract...

I am still a believer that there is a strong underlying support in the Physical buyers (India's Jewelers) as well a s investors who will continue to use Gold as their "safe haven' alternative investment of choice.... Many Traders and investors may look at this recent sell-off as a "Bargain Buying" opportunity....We gold bugs are well aware that this Gold market is hugely "OVERBOUGHT" and will react top heavy when "bearish Gold news" is revealed.....However, the resiliency of the market Is very well documented.....

Silver took a sizeable hit today as well as September Silver Traded a very volatile $3.11.5 range and settling at $39.43.1 Or $2.32.1 LOWER on the day......

8/5 DATA
UNEMPLOYMENT........7:30 am cst.
Consumer Credit...... .2:00 am cst.

MY SWING NUMBERS 8/5
DECEMBER GOLD......
RESISTANCE # 2................$1705.00
RESISTANCE # 1................$1682.00
PIVOT................................$1662.00
SUPPORT # 1....................$1639.00
SUPPORT # 2....................$1621.00
VOLUME............................260,000 ****

SEPTEMBER SILVER
RESISTANCE # 2................$43.42
RESISTANCE # 1................$41.42
PIVOT................................$40.30
SUPPORT # 1....................$38.30
SUPPORT # 2....................$37.19
VOLUME............................100,000 ****

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

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