Wednesday, December 28, 2011 at 3:27 PM

Gold Settles $31.40 Lower ... ($1564.10)

Today's February Gold futures traded a vast $37.40 range complete with volatility and light volume as the December sell-off continues. On December 1February Gold settled at $1739.80 per ounce and today 12/28 Gold settled t 41564.10. That's a drop of $17.70in just 28 days.

Many investors are concerned with tomorrow's Italian debt auction and the fragility of the European Union's debt crisis in general. It has become apparent with the low volume that many precious metals traders have packed it in until the first of the year. With light volume and high volatility the reaction to economic data will be generally more over done as it was today.

The situation with Iran continues to heat up as the Iranian navy continues to use the Strait of Hormuz to conduct its military exercises. The U.S warned Iran Wednesday that it will not tolerate any disruption of naval traffic through the Strait of Hormuz, after Iran's naval chief said the Islamic Republic of Iran is capable of closing the vital oil route if the West imposes new sanctions targeting Tehran's oil exports....KEEP AN EYE ON THIS!

ECONOMIC DATA 12/29
Initial Jobless Claims.............7:30 am. cst.

MY SWING NUMBERS 12/28/11
FEBRUARY GOLD
RESISTANCE # 2................ $1609.00
RESISTANCE # 1................ $1586.00
PIVOT..............................$1572.00
SUPPORT # 1..................... $1549.00
SUPPORT # 2................... ..$1535.00
VOLUME...........................46,000

MARCH SILVER
RESISTANCE # 2................ $29.39
RESISTANCE # 1................ $28.30
PIVOT ..............................$27.70
SUPPORT # 1..................... $26.62
SUPPORT # 2.................... .$26.00
VOLUME ...........................12,000

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.