Gold Settles $10.40 Higher ... ($1645.20)

Friday's June Gold futures traded a choppy and volatile $21.20 range including establishing a new weekly low ($1626.80). However, the June futures staged a mid - morning rally to close the session at $1645, 20. This is actually pretty impressive when you consider that June Crude Oil futures dropped by over $4.00 per barrel today. The June crude futures traded as low as $97.51. The Unemployment number was misleading and showed U.S employers cut back on hiring in April and the Jobless rate fell as many Americans have given up looking for work.

The continued poor U.S data coupled with the never ending Euro region debt crisis may spark safe haven 'buying. I have to think with the latest Jobs data that indicates a slower economic growth may spark a reversal by the FED in regards to adding more stimulus to help jump start this very sluggish economy. Today may have also sparked some bargain buying as prices dipped below $1630.00 per ounce ...$1625.00-$1630.00 level is a key support level that held.

This week the June futures market traded a weekly range of $45.50 which produced a high of $1672.30 and a low of $1626.80.....

Thursday:

Thursday June Gold settled at $1634.80 as the precious metals reacted to a better than expected Initial Jobless Claims data. The U.S Department of Labor announced that the number of U.S workers filing for new applications for unemployment benefits fell to its lowest level in a month last week. Initial jobless Claims dropped by 27,000 to 365,000 for the week ending April 28th.

Wednesday:

Wednesday'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.....

Tuesday:

Tuesday's June Gold futures traded a quiet $14.80 range as much of Europe and Asia celebrates the May Day holiday. The June contract traded as high as $1672.20 and as low as $1657.50 as traders may be sidelined in anticipation of Thursday's economic data as well as Friday's UNEMPLOYMENT data. Today's trade was very technical as it traded between my pivot ($1659.00) and 1st resistance levels ($1673.00) for most of the session. Despite higher Crude Oil prices today (June Crude Oil traded as high as $106.43 per barrel) the precious were unable to maintain early rally momentum as the April ISM Manufacturing Index was reported to be 54.8 up 1.4 points and better than expected. This is the highest result since last June proved to be bearish for precious metals.....

Monday:

Monday'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.....

MY SWING NUMBERS 5/

JUNE GOLD

RESISTANCE # 2..................$1661.00

RESISTANCE # 1..................$1653.00

PIVOT.................................$1640.00

SUPPORT # 1.......................$1632.00

SUPPORT # 2.......................$1619.00

VOLUME..............................152,000

JULY SILVER

RESISTANCE # 2..................$30.93

RESISTANCE # 1..................$30.68

PIVOT................................ $30.23

SUPPORT # 1.......................$39.98

SUPPORT # 2.......................$29.53

VOLUME............................. 41,000

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PFGBEST Research Division

mdaly@pfgbest.com

877-294-4669

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