Gold Settles $8.10 Higher ... ($1639.60)

Today's February Gold futures traded a choppy $17.20 range as traders used more bullish data to extend yesterday's rally momentum. Chicago Fed President Charles Evans said the economy was in need of additional stimulus and stated he was in favor of substantial additional easing and to continue to leave rates low until unemployment falls below 7% or inflation reaches 3%....

A possible quantitative easing 3 would be negative for the U.S Dollar and therefore bullish for Gold. Evans also added that if indeed there is a need or a QE 3 it would likely be $600 billion.

The Gold market's recent rally has also been fueled by strong physical demand from India (#1 consumer of Gold) and China (#2 consumer of Gold in the world).China is preparing for the Lunar New Year (January 23rd) which is a key Gold buying period.

March Silver traded a quiet .69 cent range and settled .7.5 cents higher for the session. ($29.89 per ounce). The trading volume in both Gold and Silver appears to building which may indicate that investors are re-entering the precious metals after watching prices drop drastically during the month of December.

ECONOMIC DATA 1/12
RETAIL SALES ...................7:30 AM, CST.
INITIAL JOBLESS CLAIMS....7:30 AM. CST.

MY SWING NUMBERS 1/12
FEBRUARY GOLD
RESISTANCE # 2................ $1656.00
RESISTANCE # 1................ $1647.00
PIVOT..............................$1639.00
SUPPORT # 1......................$1631.00
SUPPORT # 2......................$1622.00
VOLUME.............................168,000

MARCH SILVER
RESISTANCE # 2.................$30.59
RESISTANCE # 1.................$30.25
PIVOT ..............................$29.90
SUPPORT # 1.....................$29.55
SUPPORT # 2.....................$29.21
VOLUME ...........................41,000

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.