Gold Closes Down $10.20 Today… ($1052.20)

By IBTimes Staff Reporter | February 05 2010 6:19 PM

The slide in the Gold market continued today as the U.S Dollar continued its torrid strength versus the basket of currencies. The Dollar has traded a six month high versus the basket of currencies primarily due to the budget deficit and fiscal health in the European Union. The fiscal problems began with Greece and has spread to Portugal, Spain, and most recently Ireland. The Strength of the Dollar has been fueled by the Euro weakness as international investors have fled to the Dollar as a safer haven.

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The erosion in Gold prices has slowed speculative Buying however, there is still plenty of physical buying which has kept the Gold from slipping much further. There has been aggressive buying from the Asian Sector in the over night market.

Most analysts believe the strong Dollar is due more on Euro weakness rather than a strong U.S economy. The continued rise in jobless claims certainly bears this point.

My Swing Numbers 2/8 April Gold RESISTANCE # 2…………….$1080.00 RESISTANCE # 1…………….$1066.00 PIVOT………………………….$1055.00 SUPPORT # 1………………...$1041.00 SUPPORT # 2………………...$1030.00

Mike Daly / Gold Specialist PFG BEST