Gold Settled $20.40 Lower ... ($1660.20)
Today's June Gold futures traded a very choppy and volatile range as traders may have taken profits after 4 strong sessions this week. Gold bugs were very much aware that FOMC Chairman Ben Bernanke was delivering a speech in New York addressing his perspective of the economic crisis. However, he did not offer any current perspective. It has certainly become evident from his last 4 speeches that if he does not mention the possibility of a Quantitative Easing 3 the Gold and Silver markets tank. After last week's poor Jobs data many analysts, traders, and investors speculated the FOMC may have a change of heart and suggest more monetary easing in order to jump start the economy...Nothing was said in today's speech to suggest that would happen. This week traded a $44.60 range which consisted of a high of $1681.30 and a low of $1636.70.
News from the week:
Thursday's June Gold Futures traded a very choppy and volatile $30.30 range as traders reacted to the unexpected rise in Initial Jobless Claims. The U.S Department of Labor reported that initial claims rose by 13,000 (380,000) and prompting investors to speculate that the labor market recovery may be slowing. The weakness of the U.S Dollar and Higher Crude Oil prices also supported and fueled higher precious metals prices today. Also the geo-political tension with Iran, Syria, and North Korea also have investors seeking the precious metals as their: safe haven alternative investment of choice. It also appears that individual investors are once buying Gold jewelry, coins, and physical Gold bars in order to have tangible assets.
Gold bugs beware! FOMC Chairman Ben Bernanke is speaking tomorrow. Ben Bernanke has single handedly sank the precious metals during his last three speeches...This may explain today's very light day session volume...
Tuesday's June Gold Futures session covered a very choppy and volatile $32.30 range.
The Low of the session was $1632.50(9:50 cst) and approximately 11:20 (cst) the market began
to rally trading the high of the day ($1664.80) just one hour later. Apparently the economic data out of China and the geo-political tension with Iran, Syria, and North Korea have convinced global investors and traders to choose Gold as there safe haven alternative investment choice.
However, despite this recent rally from $1613.00 (April 4th) traders and investors alike will be watching FOMC Chairman Ben Bernanke's comments very closely on Friday April 13th.
Chairman Bernanke has single handedly sank the Gold market the last 3 times he spoke.
The scenario may be a bit different Friday due to the poor Unemployment Data released last Friday. So maybe the script will change somewhat.... We shall see soon enough.
Monday's June Gold Futures traded a quiet $13.20 range on fairly light volume.
Friday's Unemployment number for the March reading of non-farm payrolls is +120,000 and the net change for the private sector was +121,000. Total payrolls were expected to be 205,000 and the estimate for the private sector was 215,000. Both numbers were worse than expected.
High inflation in China coupled with the heightened geo-political tension in Iran and North Korea may be making gold more appealing as a safe haven investment choice. Iran's Foreign Minister Ali Akbar Salehi was quoted by Iranian Media as saying that Tehran would not agree to world powers imposing pre-conditions before the nuclear talks which will resume in Istanbul after collapsing more than a year ago. Setting conditions before the meeting means drawing conclusions, which is completely meaningless and none of the parties will accept conditions set before the talks. Iran's Supreme National Security Council announced that talks between Tehran and the 5+1 group will be held in Istanbul on April 14th. (The 5 permanent members of the UN Security Council consist of the USA, China, Russia, France, & Britain. PLUS Germany)...
The U.S and its allies are concerned that Iran developing atomic weapon capability....
Washington has not ruled out military against Tehran if diplomacy fails. North Korea is planning on testing and launching missiles despite a strong warning from the West. As the geo-political sabre rattling continues it appears savvier investors are choosing Gold over fiat currencies...
MY SWING NUMBERS FOR 4/16
RESISTANCE # 2..............$1689.00
RESISTANCE # 1..............$1675.00
SUPPORT # 1..................$1651.00
SUPPORT # 2..................$1641.00
RESISTANCE # 2...............$32.85
RESISTANCE # 1...............$32.12
SUPPORT # 1.................. $30.97
SUPPORT # 2............... . $30.51
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