Gold Closes .90 Cents Higher...(41051.50)

Today's Gold trade was very choppy and volatile. The day session (COMEX) covered a $11.50 range. Though the precious metals feel extremely overbought and certainly technically top heavy theengines that drive these markets are still BULLISH. For example the U.S Dollar is still very weak versus the EURO, Crude oil is on the rise, and the Equity markets are gathering strength just to name a few. Another theory as to the recent lack of precious metals momentum has been the rapid strength recently in the world Equity markets .I believe many investors are choosing to be more diverse with their investments and pulling monies from both the Silver and Gold markets. (DIVERSIFICATION) However, at these virgin levels many Gold Bugs are taking profits at the first signs of resistance and have been buying the dips. (so far so good). My trading philosophy has been to buy Bull/Call spreads. (so far so good) but I must say there is an over-bought feel to this market. But then again it's felt heavy for a few weeks. I am certainly Bullish long term...But until we gather some momentum (fresh money) be careful...protective stops are certainly a must.

The following are my swing numbers for 10/19

(DECEMBER GOLD)

RESISTANCE #2...........$1063.00

RESISTANCE #1...........$1056.00

PIVOT........................$1051.00

SUPPORT #1................$1045.00

SUPPORT #2................$1039.00

Mike Daly /Gold Specialist

PFG BEST