Gold Settles $53.80 Higher ... ($1604.30)

Today's August Gold futures traded a huge $56.50 range as encouraging news from the European Union fueled higher precious metals prices for the week. The August Gold contract covered a $60.20 range for the week. It was reported that European Union leaders reached an accord that eased worries that European Banks would fail. Given past summit failures many analysts, traders, and investors may have positioned themselves short the precious metals expecting more of the same. After announcing that the European leaders announced their plan to stabilize the regions banking sector it was viewed as extremely bullish for precious metals as well as Crude Oil. Crude Oil helped sustain the Gold rally as August Crude traded as high as $85.20 per barrel (as of this posting)....Higher Crude Oil prices are seen as inflationary and therefore bullish for gold...

July Silver traded a $1.57.7 trading range and settled $1.33.3 Higher ... ($$27.58 per ounce)

News from the week:

Thursday:

Today's August Gold traded a very choppy and volatile $32.00 range. It certainly apparent that investors and traders are not very optimistic that the European Union summit will result in any major changes concerning the debt crisis in the region. The continued indecisive action in the region has placed heavy pressure on the Euro currency and forcing global investors into the U.S Dollar and U.S treasuries as their safe haven alternative investments...

Reports that troops from Turkey are mounting on the Syrian - Turkish border after a Turkish plane was shot down earlier in the week Syria has made no apologies... This could escalate

at a moment's notice...

The U.S Department of Labor reported Initial Jobless Claims as 386,000....It was expected to be 385,000.....

July Silver covered a .99.5 cent range and settled at $26.24.7 per ounce for the session....

.

Wednesday:

Today's August Gold futures traded a technical $21.50 range.

It appeared traders and investors alike were very tentative in their trading as they await not only tomorrow's economic data but also the start of the two day European summit. This is the 20th such summit called in order to resolve the spreading debt crisis in the region. Today's trade was seesaw event as the market traded above and below unchanged seemingly most of the mid- late session. Gold seems to have regained its luster in the rural areas of India as expectations of an average monsoon season. The monsoon season is critical to gold sales. A good monsoon and a rich harvest will boost gold purchases. Farmers prefer to invest in gold due to a lack of banking facilities in the rural areas

Tuesday:

Today's August Gold futures traded a choppy $20.20 range as Spanish and Italian borrowing costs rose as concerns that this week's European Union summit will fail to solve the regions debt crisis. This situation has pressured the Euro currency, made the U. S Dollar the favored investment choice, and therefore has lessened the appeal for precious metals. However, these price levels are apparently appealing to Central Banks recently as the International Monetary Fund's website has produced data showing that Russia, Turkey, Ukraine, and Kazakhstan have increased their gold reserves. Gold has also not been able to maintain recent rally momentum as the price of Crude Oil continues to trade under $80.00 per barrel. Today's August Crude Oil futures traded as low as $78.33 per barrel. These lower Crude prices are anti- inflationary and therefore bearish precious metals...

Silver traded a .76 cent range and the July future settled at $27.03.8 per ounce...

Monday:

Today's August Gold futures traded a $22.10 choppy range. The market was fueled as short covering and renewed safe- haven buying helped push the yellow metal through the $1575-$1585 resistance levels. Despite lower Crude Oil prices and a stronger U.S Dollar it became apparent that investors and traders alike were choosing the precious metals as their alternative investment choice as the news from the European Union continues to capture the world's headlines. Greece's newly elected finance minister will have to be replaced due to health issues. And German Chancellor Angela Merkel reportedly stated that EU members need to be responsible for their own debt.

July Silver traded a huge $102.5 range and settled 85.9 cents higher ...$27.52 per ounce.

MY SWING NUMBERS 7/2

August Gold

RESISTANCE # 2............. $1645.00

RESISTANCE # 1............. $1625.00

PIVOT........................... .$1588.00

SUPPORT # 1...................$1568.00

SUPPORT # 2...................$1531.00

VOLUME.........................140,000

July Silver

RESISTANCE # 2...............$28.81

RESISTANCE # 1...............$28.15

PIVOT............................. $27.23

SUPPORT # 1...................$26.62

SUPPORT # 2...................$25.65

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

 

PFGBEST Research Division

mdaly@pfgbest.com

877-294-4669

312-775-3014

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