Gold Settles $17.00 Higher ... ($1591.90)
Today's June Gold futures traded a choppy $29.70 range. The market extended yesterday's mammoth $38.40 rally and actually closed higher for the week. This week yielded a $70.80 trading range which produced a low of $1526.70 (a level not seen since 7/6/11) and new weekly high of $1597.50. Despite lower Crude Oil prices and more Credit downgrades for Greece it appears global investors are choosing the precious metals as their safe haven investment choice based on the strong indication from the FOMC minutes that more Quantitative Easing is on the table. Injecting more stimulus into the economy would mean printing more U.S Dollars which is negative for the Dollar and bullish for precious metals. Anytime you print more of anything it becomes WORTH - LESS.
Today's June Gold futures rebounded from four straight losing sessions and traded a robust $41.40 range. The Gold futures held a very key support level between $1520.00 and $1525.00
this coupled with the news from the FOMC April meeting minutes suggesting that several members of FED were in favor of more Quantitative Easing if the U.S Economy continues to falter brought the bulls back into the precious metals. Despite lower Crude Oil, U.S Dollar strength, and the continued chaos in Greece the possibility of more Easing / Stimulus completely trumped everything. The recent sell-off may have been overdone in my opinion however, the market is always right and certainly filled in a lot of technical gaps and pockets.
These levels may have also sparked bargain buying opportunities as the WGC (World Gold Council) announced that demand in China is increasing and may add 1,000 metric tons to their already insatiable demand by year end and may topple India as the number one consumer of Gold in the world soon...It has been reported that Iran is actively buying Gold bullion from Turkey for savings as well as trading currency as the sanctions imposed by the West begin to tighten...
Today the U.S Department of Labor report on Initial Jobless Claims is 370,000...
This was expected to be 365,000.....
Today's June Gold futures traded another volatile and choppy $25.50 range while extending its decline to four consecutive sessions. In fact since May 1st The Gold future have only had two up days out of twelve trading sessions. The U.S dollar continues to gather strength amid the latest failure in Greece to form a government. The June gold futures have dropped $125.80 settlement to settlement since May 1st. Today's range included a low of $1526.70 a level not seen since July 6th 2011. Lower Crude Oil prices also pressured the precious metals as June Crude Oil futures traded as low as $91.81 per barrel today. It was reported that Greece will schedule new elections for June 17th in hopes of electing a government. Many investors are thinking there is a strong possibility that Greece will exit the Euro currency as they unwilling to accept austerity anymore. Some analysts are Germany will save Greece with a last minute mega bailout. Either way the European region needs to stop the bleeding and figure a long tern resolution to their financial crisis. These Band-Aid bailouts are certainly not working.
The FOMC released their minutes from the April meetings... (Some headlines below)...
Several Members on the FOMC said easing may be needed if recovery falters...
Most members saw unemployment above their target in 2014...
Several members saw inflation at or below 2% in late 2014...
Today's June Gold futures covered a choppy and volatile $17.60 range as traders and investors alike are watching the chaos in Greece as the political uncertainty continues to pressure the Euro currency as well as the region. Greece's elections on May 6th declared no clear-cut winner and after yielding no results today the country will hold another election in its attempt to form a new government. This political impasse has helped strengthen the U.S. Dollar as investors are choosing the Dollar and U.S Treasuries as their investment choice. A stronger U.S Dollar is normally bearish for precious metals. Today's trading session produced low of $1546.80 the lowest level since December 29th.... After three straight losing sessions we have breached and held the $1545- $1550 support level...This is a very technical and pivotal level for the gold bugs...I guess time will tell....
Today's June Gold futures traded a volatile and choppy $35.80 range as a Greek political stalemate raises tensions within the European Union. Unable to reach a reach an agreement on forming a new government Greece is on the verge of pushing the country closer to financial default. Unless an agreement can be met tomorrow there is a real possibility that Greece may become the first country to forsake the Euro. Greece is scheduled to run out of money next month and they have no set government in place to negotiate the next bailout payment.
The latest chaos in Greece has raised the tension in the Euro region to new heights and sending investors out of the weakened Euro and into the U.S Dollar and U.S Treasuries.
RESISTANCE # 2............... $1616.00
RESISTANCE # 1..................$1604.00
SUPPORT # 1.......................$1573.00
SUPPORT # 2.......................$1556.00
RESISTANCE # 2..................$29.58
RESISTANCE # 1..................$29.14
SUPPORT # 1.......................$28.03
SUPPORT # 2.......................$27.34
PFGBEST Research Division
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