Today’s gold market stated tamely enough as the market encountered strong resistance above the $1160.00 level and convinced traders there might be a technical retracement and to take some profits prior the weekend. However the whole climate of the market changed as news of the(SEC) Securities and Exchange Commission has charged Goldman Sachs with fraud. The SEC say’s Goldman Sachs misled investors by “misstating and omitting key facts about a financial instrument related to subprime mortgages”. As news reached investors of the SEC’s charges the Avalanche sell-off of stocks and gold steam rolled through key support levels ($1150, $1140, & $1135.00) before holding at the $1130.00 level. The gold managed to gain a portion back and settling at $1136.90.

Maybe the patience of the jewelers of India has been rewarded. It has been reported that the purchasing of gold has been sluggish in India due to the escalation of prices. The jewelers of India have been very aggressive buyers after substantial price dips. The India wedding season is in full swing and the demand for gold is insatiable. This price dip may afford them the opportunity to re-stock.

Swing Numbers / Monday 4/19 June Gold

RESISITANCE # 2……………..$1174.00
RESISTANCE # 1……………..$1156.00
PIVOT……………………………..$1143.00
SUPPORT # 1…………………..$1125.00
SUPPORT # 2…………………..$1112.00

Mike Daly / Gold Specialist
PFG BEST
mdaly@pfgbest.com