Gold Settles $32.80 Lower... ($1751.50)

Today's December Gold futures market notched yet another All-time high trading as high as $1816.60.... The market sold off hard starting with rumors of the CME GROUP possibly raising margin requirement and continued to fall when the possibility became a reality. The raising of margins makes it more expensive to hold trading positions therefore causing many traders to sell-off long positions in order to meet their margin requirements... As I have been stating for months we are very top heavy and in need of a correction in order maintain the integrity as well as the liquidity of the market...I still believe the global investors will seek Gold as their currency of choice as these turbulent economic conditions worldwide have investors using Gold as their 'safe haven " alternative investment... Gold historically retains its value better than most commodities during times of economic crisis....These mammoth trading ranges continue to reflect the lack of confidence and instability of the European Union , united States, and growing concerns with China's HIGH inflation......

JOBLESS CLAIMS FELL FROM 402,000 -395,000.....
MY SWING NUMBERS 8/12

December Gold
RESISTANCE # 2................$1844.00
RESISTANCE # 1................$1798.00
PIVOT................................$1771.00
SUPPORT # 1....................$1724.00
SUPPORT # 2.................. $1698.00
VOLUME.............................276,000

SEPTEMBER SILVER
RESISTANCE # 2...............$40.74
RESISTANCE # 1...............$39.71
PIVOT...............................$38.82
SUPPORT # 1...................$37.78
SUPPORT # 2...................$36.90
VOLUME............................50,000

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.