Friday's June Gold futures traded a very quiet and lackluster $9.60 range as traders may be sidelined as the G20 leaders meet in Washington. Today's market lacked any type of catalyst capable of moving the market significantly in either direction. A weaker U.S Dollar and higher Crude Oil prices helped to support higher gold prices today. May Crude Oil futures traded as high as $104.27 per barrel on Friday. This week the June Gold futures covered a $28.40 range.
The International Monetary Fund (IMF) and leaders from the G20 hold their spring meetings from April 19th-22nd in Washington. The world's most powerful leaders along with IMF officials are scheduled to discuss the European Union's debt crisis as well as the geo-political tensions in the Middle-East. IMF Managing Director Christine Lagarde goal is to bolster the IMF's crisis-fighting coffers as an emergency backstop to aid the debt crisis in Europe. However, leaders from the U.S, Canada, and Australia stated that Europe must take a more aggressive stance to cut debt and right their financial ship. The G20 citied the situation in Europe as the first in a list of drags' on the growth of the global economy.
The IMF is seeking to raise about 60 billion more however. The BRIC Nations (Brazil, Russia, India, and China are apparently insisting on more say or power with the IMF before committing more assets....It is thought that IMF's Lagarde has raised over 320 billion thus far.
Noteworthy Weekly News:
Once gold prices held the $1630.00 level it is my belief that traders and investors alike saw these lower prices as a bargain buying opportunity.
The U.S Department of Labor announced that the Weekly Jobless Claims totaled 386,000.
This was worse than the projected 370,000.
Physical buying remains sluggish from both China and India.
I expect that to change as the jewelers of India will need to stock their shelves in preparation for the Akshaya Tritiya festival which is scheduled to commence next Tuesday April 24th.
The June futures contract traded as high as $1655.20 and as low as $1638.10 as lower Crude Oil prices, European Union uncertainty, and news from Syria pressured the precious metals as traders will look forward to tomorrows economic data to plan their trading strategies.
India's Akshaya Tritiya festival is Tuesday April 25th and it has been revealed that India's post offices will sell discounted gold coins as the festival nears. The high price of gold along with the recent 21 day strike by India's jewelers has sparked heavy country wide advertising from the jewelers in order to capture wary customer business. It is believed that valuables purchased on Akshaya Tritiya will bring prosperity and good fortune.
China is the largest producer of Gold in the world and may overtake India as the world's largest consumer of gold as well as they are experiencing a 35% growth in the jewelry market.
The citizens of China have traditionally given jewelry, especially gold the gift of choice for births as well as weddings. And with the growing awareness that gold is anti-inflation asset it appears the citizens of China are overwhelmingly choosing gold as their gift of choice.
It has been reported that Syria is selling its gold reserves at a discount prices.
According to Reuters- Syria is trying to sell gold reserves to raise revenue as Western and Arab sanctions targeting its central bank and oil exports begin to bite, diplomats and traders said.
Today's June Gold futures traded a choppy and volatile $23.40 range.
Tuesday's trading session traded technically between my second support and first resistance levels as the sessions economic data had traders scrambling to get on the right side of the market. Early in the session it appeared that traders and investors alike speculated that the risk appetite in the gold market had improved since there was a successful Spanish bond auction overnight. Spain was able to sell more 12 and 18 month debt than previously planned.
Fitch affirmed that Austria's AAA rating and kept the outlook as stable. The April reading of Germany's ZEW Survey of Economic Sentiment was up 1 point from the previous month and much better than the projected fall of 3 points. These factors helped to eases investor concern regarding the European Union and the Euro.
RATINGS AGENCY Egan-Jones cut Spain's debt rating to BBB- from BBB. (Bearish Euro)...
India has reported that its demand for physical gold is down 50 % from a year ago.
The Jewelers of India ended a 21 day strike after the government assured them it would consider their concern over the tax increase on imported gold. The 21 day strike cost the industry about 200 billion rupees or 4 billion in lost revenue. However, Tuesday April 24th is Akshaya Tritiya is one of te most auspicious days of the Hindu Calendar. Gold and gold jewelry bought and worn on this day signify never diminishing good fortune.
Higher Crude oil prices also helped to support today's higher close... May Crude oil futures traded as high as $105.07 per barrel today..
Today's June Gold Futures traded a very choppy and technical $17.60 range.
Gold prices dipped as investors and traders concerns intensified over Spain's ability to keep its finances under control. Investors will be eyeing this week's bond auction as worries about Spain have German bond yields at record highs. The uncertainty in Spain is certainly pressuring the euro as well as gold prices.
Cleveland's Fed Boss Sandra Pianalto said a government report showing employers added 120,000 workers in March, the fewest in five months, underscores the choppy nature of the United States expansion. Recent labor market data provide an example of the uneven pattern of economic activity. Pianalto added It seems as though the labor market is still improving, albeit at a modest pace.
MY SWING NUMBERS 4/23
RESISTANCE # 2...........$1653.00
RESISTANCE # 1...........$1647.00
SUPPORT # 1............... $1635.00
SUPPORT # 2................$1633.00
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