Today's Gold market produced an impressive late session rally to close on the plus side. During the day session (Globex) covered a range of $13.50 and trading as low as $1203.80. With U.S markets closed Monday in observance of Memorial Day many traders got a jump on the three day weekend and it felt like a holiday market early on. However, there were a couple of worthy press announcements that sent the gold south.

The Federal reserve announced it has scheduled Its first small value auctions of term deposits, which they expect to be a financial instrument to aid in monetary tightening. This was perceived by investors as an indication that the Federal Reserve may be looking to raise interest rates.... Higher interest rates could be negative for gold at least in the short term....

Fitch ratings Spain's long-term foreign and local currency Issuer Default Ratings (IDRs) to AA+ from AAA-. However, Fitch Ratings indicated that the outlook appeared stable. The European Union debt crisis will continue to fuel the Global economy...

Despite lighter volume and negative Gold news the late session rally continues to prove that investors are buying price dips and choosing Gold as their safe haven preference......

*HAPPY MEMORIAL DAY WEEKEND*

SWING NUMBERS FOR TUESDAY JUNE 1st....AUGUST GOLD

RESISTANCE # 2...............$1225.00 RESISTANCE # 1..............$1220.00 PIVOT...............................$1212.00 SUPPORT # 1.................. $1207.00 SUPPORT # 2...................$1198.00

Mike Daly / Gold Specialist

PFG BEST mdaly@pfgbest.com 877-294-4669 312-563-8029 312-775-3014