August Gold Settles $1.40 Higher ... ($1566.90)

Today's August Gold futures traded a very quiet and tentative $14.60 range.

The two day sell-off ended today as the August futures seesawed to close $1.40 Higher.

The two day sell-off was fueled when FED Chairman Ben Bernanke made no decisive statements concerning the injection of more stimulus into the sluggish U.S economy.

Wednesday's non committal comments from the FOMC were not what the market places wanted or expected...The market covered a $75.70 range this week. The High was $1634.30 before Bernanke spoke. Today we traded as low as $1566.90 before settling at $1566.90 for the week.... Today August Crude Oil futures traded as low as $77.56 per barrel. Lower Crude Oil prices in recent week's have also prevented Gold from maintaining rally momentum lately.

Thursday:

Today's August Gold futures traded a mammoth $43.40 volatile range.

The fallout from the FOMC's hesitance to inject more stimulus into U.S economy continued across the globe as investors and traders world-wide where once again disappointed in the FED's non- committal action. Apparently FOMC Chairman Bernanke's statement we are prepared to do more wasn't enough to keep Gold bugs confident in their long positions.

There is certainly a trend forming...Bernanke speaks and precious metals get crushed!

This trend started February 29th....The U.S Department of Labor released last week's Initial Jobless Claims as 387.000. This was expected to be 383,000....

July Silver got clobbered as well...Settling $1.55 lower ... ($26.83.9 per ounce)

Wednesday:

Today's August Gold futures traded a very choppy and volatile $36.10 range. The session produced a very seesaw trade and traded as low as $1590.50. The world was waiting to hear the verdict from the two day FOMC meeting. Once again the answers were a bit cryptic and resulted in no definite time frame for more stimulus. However, there seemed to be a different tilt to his statements. Chairman Ben Bernanke stated If we do not see more improvement from the labor market we will do more we are prepared to do more...he also said he thought both QE programs were effective...Once again this was not the response gold bugs were hoping for.

But is was as devastating as his past conferences. He certainly addressed the poor labor market and he did say twice we are prepared to do more....Investors and traders will eye tomorrow's economic data before choosing their trading strategies.....

Tuesday:

Today's August Gold futures traded a quiet $16.20 range as many gold bugs appear to be waiting for news from the FOMC after their two day meeting ends tomorrow. The mood in the market remains tentative and uncertain as traders are hoping the FED will take a straight forward approach in its decision whether or not to inject more stimulus in order to jump start the sluggish U.S economy.... Many analysts are predicting the FOMC will suggest more stimulus however, we gold traders have been disappointed every FOMC meeting since September 29th as FOMC Chairman Ben Bernanke has continuously stated that there is no need for anymore stimulus in the near future as the economy is growing at a gradual pace...The latest jobs sector housing sector, and trade numbers suggest the U.S economy is slowing....So it is my belief that traders and investors alike are waiting for tomorrow's FOMC news release before choosing their trading strategies...

Monday:

Today's August Gold futures trading session covered a choppy and volatile $24.40 range.

Greece avoided exiting the Euro currency zone as the Greek citizens elected political parties who favored an international bailout deal however, the region's debt crisis remains prevalent.

Apparently the newly elected Greek government is seeking to renegotiate Greece's current austerity measures but, Germany's Chancellor Angela Merkel has again ruled out any negotiating and insisting that the present set of agreements made with International lenders must be honored. Today's Gold trade had a seesaw range trading as high as $1631.30 and as low as $1606.90. it is my belief that traders are remaining tentative as they wait to hear news from the FOMC's Tuesday - Wednesday meeting this week.......Stimulus ? or No Stimulus ?

MY SWING NUMBERS:
MONDAY JUNE 25th....

AUGUST GOLD

RESISTANCE # 2..........$1581.00

RESISTANCE # 1..........$1573.00

PIVOT.........................$1566.00

SUPPORT # 1...............$1559.00

SUPPORT # 2...............$1551.00

VOLUME......................214,000

PFGBEST Research Division

mdaly@pfgbest.com

877-294-4669

312-775-3014

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