Gold Closed $2.50 Lower Today and Settles at ($1725.90) For The Week ....
Today's trading session has been indicative of the entire week. April Gold traded a very technical, choppy, and volatile $18.90 range. The range held support and resistance levels as the world's investors and traders continue to decipher the news out of the European Union.
The news from the EU continues to change seemingly minute to minute. We hear rumors and news from the regions Finance ministers that are as clear as mud. The debt situation in Greece is virtually the main drag on the momentum of the precious metals markets.
The news in the Middle-east concerning Iran and its sabre rattling over economic sanctions imposed by the West and the rioting and demonstrations in both Egypt and Syria have fueled higher Crude Oil prices recently as traders are speculating that these Geo-political tensions have the potential to accelerate and possibly affect Oil supply or transportation .March Crude Oil futures traded as high as $103.57 per barrel on Friday. This should be bullish for the precious metal. However, investors are flocking to the U.S Dollar as the Euro continues to be pressured by the non action concerning their second bailout package. A WEAKER Euro is bullish for the U.S Dollar............
NOTEWORTHY WEEKLY NEWS:
April gold traded as low as $1706.70 early on in the session as the European news regarding the Greek bailout continued to be negative causing investors to choose the U.S. Dollar over the precious metals as their currency of choice. A weaker Euro is 'bullish for the Dollar and a stronger Dollar is negative for Gold. Mid to late session rumors from the E.U began to put a more positive spin on Greece's chances to obtain their second relief package. The rumors began to turn more factual and sent investors buying Gold and Silver as the U.S Dollar dropped versus the Euro.....Causing Gold to close positive.
The U.S Labor Department reported that Initial Jobless Claims were 348,000 much better than the 365,000 that had been projected.
The world continues to watch Greece struggle in its attempt to meet the latest austerity measures in order to receive its second rescue package.Eurogroup President Jean-Claude Juncker has invited euro zone ministers to a conference call on Wednesday, February 15th, to discuss a second Greek program, he said on Tuesday, changing a previous plan to hold a meeting with the ministers in Brussels as reported by REUTERS. The format changed as Mr Juncker was waiting to receive assurances from the Greek parliament over the implantation of a reform program, as well as other technical work needed to be addressed.
Greece has a track record of making promises and not delivering, and hopefully this time will result in a different outcome. The fragility and indecision in the region has been a huge drag on the precious metals. Traders have been less active in the precious metals as Gold bugs are taking a wait and see approach before forming their trading strategies. The trading volume has dipped dramatically in the past few sessions.
By Antonis Galanopoulos and Natalie Weeks
Feb. 10 (Bloomberg) -- Greek Prime Minister Lucas Papademos secured approval from his Cabinet to submit laws for new budget secured approval from his Cabinet to submit laws for a new budget
secured approval from his Cabinet to submit laws for new budget measures designed to secure a second rescue package for the country, according to a government official today.. The official, who declined to be named, spoke to reporters in Athens at the end of the Cabinet meeting......
THIS NEWS SHOULD HAVE BEEN MUCH MORE BULLISH FOR GOLD!
However, due to the demonstrations and rioting in the streets of Athens It is my opinion that traders and global investors are taking a wait and see approach before re-entering the Gold market.
Gold traders are also eyeing the Geo-political tensions in Iran, Egypt, and Syria....
MY SWING NUMBERS FOR 1/20 (PRESIDENTS DAY) Exchanges are closed.....
GLOBEX WILL TRADE SUNDAY NIGHT......
RESISTANCE # 2..........$1746.00
RESISTANCE # 1..........$1735.00
SUPPORT # 1...............$1717.00
SUPPORT # 2...............$1708.00
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