Gold Settles $8.40 Lower ... ($1654.00)

Today's June Gold Futures traded a quiet $17.90 range as traders and investors alike are awaiting tomorrow's economic data prior to choosing their trading strategies. Today's sell-off was due primarily to U. S Dollar strength versus a weaker Euro as Spain's debt crisis concerns become more woeful to the stability of the European Union. The situation in the Euro region remains as clear as mud and in my opinion is a major reason we have seen a drop off in the daily volume of the gold market. For those of us who trade the precious metals we can testify that it has become more volatile to trade as the volume is decreasing. Traders have had to perceive, persevere improvise, and overcome as traders are trading the daily economic data and taking profits when available instead of holding positions over night. Between the FOMC and the day to day Euro region crisis it has become very difficult to hold positions over night as the volatility rises and the volume decreases. It's my personal opinion that the bulls are waiting for either (1) The Fed to relent and inject more stimulus to jump start the U.S economy. (2) Monitor the continued geo-political tensions in the Middle-East. (3) Hope that India & China begin buying physical bullion to increase consumer interest before committing long term to the positioning in the precious metals.....

July Silver settled .33 cents lower ... ($30.64.5)

Economic data: 5/3

EXPORT SALES....................7:30 am. cst.

INITIAL JOBLESS CLAIMS......7:30 am. cst.

MY SWING NUMBERS 5/3

JUNE GOLD

RESISTANCE # 2..................$1673.00

RESISTANCE # 1..................$1664.00

PIVOT.................................$1655.00

SUPPORT # 1.......................$1645.00

SUPPORT # 2.......................$1637.00

VOLUME..............................105,000

JULY SILVER

RESISTANCE # 2..................$31.36

RESISTANCE # 1..................$31.01

PIVOT................................ $30.71

SUPPORT # 1.......................$30.35

SUPPORT # 2.......................$30.06

VOLUME..............................24,000

.

PFGBEST Research Division

mdaly@pfgbest.com

877-294-4669

There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.