Their were signs of “bargain hunting” buying from India during the Globex overnight session. This and the anticipation of the FOMC retaining U.S Interest rates unchanged fueled the buying of the precious metal. Gold traders took out some key (short term) technical resistance levels ($1130.00 - $1135.00) shifting the
markets momentum. There seemed to be sigh of relief from the “bull camp” suggesting they had “weathered the storm”.

The Consumer Price Index (CPI) rose 0.4 %....( matching expectations). Housing Starts rose to the 574,000 level (better than the 563,000 projected). The jewelers of India have expressed strong buying interest at the $1100.00 level and certainly below. However, it also appears every time we have dipped below the $1120.00 level there has been “bargain buying” from India as well as speculative buying from investors.

REPORT: 12/17

EXPORT SALES………….7:30 am (CST)
JOBLESS CLAIMS……….7:30 am (CST)

My swing numbers for 12/17…FEBRUARY GOLD….

RESISTANCE # 2……………..$1151.00
RESISTANCE # 1……………..$1144.00
PIVOT…………………………..$1133.00
SUPPORT # 1…………………$1126.00
SUPPORT # 2…………………$1115.00

Mike Daly / Gold Specialist

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