Despite a U.S Dollar rebound the Gold market over came an early deficit ($1123.50 low Globex) to close $2.20 higher ($1136.00) primarily due to continued European Union concerns. Once again the news from Europe is sketchy at best regarding the opposition from Greece in regards to aid from the International Monetary Fund (IMF). Greece has the largest budget deficit among the Euro states and we were lead to believe a solution was worked out to help Greece. Evidently this was not resolved as Greece is opposed to the IMF bail-out. This scenario has European investors in search of “safer havens”….primarily GOLD.

The Jewelers of India have continued to buy price dips in preparation for the April – May Wedding season as well as the upcoming Akshaya Tritiya festival in May. Physical demand remains high globally… Today is the second consecutive session we have settled over the $1130.00 level which has been a strong resistance level recently. Investors are still eyeing the FOMC as the latest jobs data may prompt the FED to raise rates in the near future.

My swing numbers for Wednesday 4/7…June Gold.

RESISTANCE # 2…………$1149.00
RESISTANCE # 1…………$1142.00
PIVOT………………………$1133.00
SUPPORT # 1……………..$1127.00
SUPPORT # 2……………..$1117.00

Mike Daly / Gold Specialist