Precious Metals Market Comments

Today's June Gold traded a very choppy and volatile $21.40 range. However, the range was very technical as the market traded between my 1st resistance and 2nd support levels.

Today's gold market opened at $1663.00 and almost instantly was trading at $1645.10.

Weak U.S Economic data coupled with news that additional Spanish Bank downgrades overnight and reports that Spain had fallen back into recession has global investors and traders

concerned with the never ending debt crisis in the European Union...The U.S Dollar was stronger versus the Euro based on today's news from Spain...the Gold market once again showed tremendous resiliency rallying almost all the way back to settle only .60 cents lower for the day session. the recent U.S economic news has not been very positive as of late particularly the Jobs and Housing sectors. It is my belief that gold bugs may be looking for the FED to resort to more easing in order to jump start this sluggish economy especially if Friday's (5/4 ) UNEMPLOYMENT Data is weak.....

Economic data: 5/1

Construction Spending...........9:00 am. cst.

My Swing Numbers 5/1

June Gold

RESISTANCE # 2.................$1680.00

RESISTANCE # 1.................$1673.00

PIVOT................................$1659.00

SUPPORT # 1.....................$1651.00

SUPPORT # 2.....................$1638.00

VOLUME.............................101,000

JULY SILVER

RESISTANCE # 2.................$31.89

RESISTANCE # 1.................$31.48

PIVOT................................$31.04

SUPPORT # 1.................. . $30.62

SUPPORT # 2.................. . $30.19

VOLUME............................29,000

Mike Daly

PFGBEST Research Division

mdaly@pfgbest.com

877-294-4669

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