The U.S Dollar lost ground today versus the basket of currencies as physical gold demand continues. The weaker U.S Dollar has helped Greece sell their debt as they attempt to get their fiscal house in order. The strength of the Euro ignited heavy physical gold buying out of the European Union. Gold is a preferred asset during times of crisis as it retains value better than most other commodities.

The early rally was also fueled by report from ADP. The ADP report indicated U.S Companies unexpectedly CUT payrolls in the month of March. The prediction was for a GAIN of 40,000 jobs instead the report revealed a LOSS of 23,000. ADP basis its report from over 300,000 companies and 22 million payrolls.

All eyes will be on Friday’s 7:30 (am) unemployment data. Since the recession began in December 2007 America has lost over 8 million jobs!

Physical demand in Asia is still brisk in anticipation To the April – May Wedding season in India. Physical demand world-wide has increased in the private sector as investors are buying coins and bars as a tangible asset.

The Gold has been trading in a very technical range basically trading between support and resistance levels. The market has struggled to show or maintain any direction while virtually trading between $1100 and $1120 range seemingly forever!

REPORTS: 4/1 THURSDAY…

EXPORT SALES………………………7:30 AM (CST)
INITIAL JOBLESS CLAIMS….............7:30 AM (CST)
CONSTRUCTION SPENDING……...9:00 AM (CST)
ISM MANUFACTURING INDEX…….9:00 AM (CST)

MY SWING NUMBERS 4/1 JUNE GOLD…
RESISTANCE # 1……….$1129.00
RESISTANCE # 2……….$1121.00
PIVOT…………………….$1112.00
SUPPORT # 1…………...$1104.00
SUPPORT # 2…………...$1095.00

Mike Daly / Gold Specialist