Gold Settles $5.50 Higher Today ... ($1732.20 for the week).....
This week the February Gold Futures market traded a very choppy and volatile $73.80 range.
The week's low was $1661.00 with a high of $1734.80. Since January 3rd ($1600.50 settlement) the February Gold contract has rallied $131.70 as of today's settlement of $1732.20.
The New Year has brought a huge demand for physical Gold and Silver from the Asian sector.
The Chinese have been buying Gold to satisfy demand for the Chinese New Year celebration in which the giving of Gold and Silver has become a tradition. It is thought that the giving of Gold and Silver will bring prosperity to both the recipient and the gift giver.
India is about to enter their wedding season as the first auspicious wedding date is January 28 and the season extends through March. India is the largest consumer of Gold in the world and the traditional gifts to the bridal are both gold and silver. Also this week the FOMC Meetings revealed there would be no rate hikes until late 2014. There was also a strong hint that they would consider more easing (injecting more U.S. Dollars /printing money) into the United States
sluggish economy.....Fitch Credit Agency cut credit ratings on Spain, Belgium, Slovenia, and Cyprus. OUTLOOK NEGATIVE....And the news didn't move the markets...maybe the Globe is getting used to the EU fragility.....
Noteworthy Weekly News:
Today's February Gold Futures traded a choppy $28.50 range as yesterday's huge rally momentum continued today. The market was fueled by overnight buying as yesterday's FOMC
Meeting revealed that there would be no rate hikes until the end of 2014 as well as a very strong hint of more easing to help jump start the sluggish U.S economy. The FOMC acknowledged that the High Unemployment and depressed housing sector were the biggest drag on the U.S economy. If the FOMC chooses to inject more U.S Dollars into the economy it would be seen as a negative for the Dollar (any time you print more of anything...It becomes worth-less) and a weaker Dollar would be bullish precious metals....there is still concerns with the European Union and that could trump all....Today's Initial jobless Claims was reported to be 377.000 and worse than the 370,000 that was projected.....
Today's February Gold Futures session traded a very volatile $54.10 range. The market rallied hard after the 11:30 CST. FOMC news release stating that there would be no ate increase through at least late 2014. They also stated that expect to maintain a highly accommodative monetary policy. This may indicate more easing in the future. The Gold market rallied from the $1666 level to the daily high $1703.30 in less than 1 hour. It appears that traders are seeing this action as U.S Dollar negative and precious metals friendly. The FOMC stated that the economy was expanding at a moderate pace and the high unemployment levels and depressed housing numbers remain a drag on the economy...
MY SWING NUMBERS FOR 1/30
February Gold RESISTANCE # 2........$1748.00 RESISTANCE # 1........$1740.00 PIVOT......................$1727.00 SUPPORT # 1............$1719.00 SUPPORT # 2............$1706.00 VOLUME...................227,000
March Silver RESISTANCE # 2.........$34.36 RESISTANCE # 1.........$34.08 PIVOT........................$33.66 SUPPORT # 1..............$33.37 SUPPORT # 2..............$32.96 VOLUME.................. 38,000
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