Tuesday, December 13, 2011 at 4:19 PM

Gold Settles $5.10 Lower ... ($1663.10)

Today's February Gold Futures traded a very choppy and volatile $27.30 range as the market reacted to the day's economic news. Early in the session Gold rallied as a weaker U.S Dollar and higher Crude oil prices helped to fuel higher Gold prices as it traded as high as $1681.70. However, the rally was short lived as the Gold market once again came under pressure from news received from the European Union. Germany's Chancellor Angela Merkel helped Gold's slide as she rejected raising Europe's bailout fund cap. Despite Higher Crude oil prices (January Crude oil futures traded as high as $101.25 per barrel) Gold remained under pressure as global investors are liquidating Gold positions in favor of the U.S dollar as their latest currency of choice. The Gold market has slid over 3% since Monday as traders may be waiting until the first of the year before re-entering this volatility that appears to be totally centered on the fragility of the Euro region.

The continued tensions in Syria and Iran are worth watching as any warring action could send the precious metals rallying....
Silver closed $25.8 cents higher.... ($31.26)

MY SWING NUMBERS FOR 12/14

February Gold
RESISTANCE # 2............$1693.00
RESISTANCE # 1............$1678.00
PIVOT ..........................$1666.00
SUPPORT # 1.................$1651.00
SUPPORT # 2.................$1639.00
VOLUME ........................165,000

March Silver
RESISTANCE # 2.............$32.53
RESISTANCE # 1.............$31.92
PIVOT ...........................$31.43
SUPPORT # 1..................$30.79
SUPPORT # 2..................$30.35
VOLUME ........................38,000

There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.