Today's Gold trade could not sustain early gains as the U.S Dollar enjoyed a late day rally. The buying demand out of China has been robust as their insatiable appetite for Gold continues. China was the largest producer and consumer of Gold in 2009 and that trend certainly looks to continue. Pending home sales FELL 16% in November. This could be an indication that sales will Continue to fall this winter possibly undermining last summers gains.

Geo-political tension:
According to Reuters: Yemeni forces killed at least two Al-Qaeda militants they said were responsible for threats against U.S and European embassies and forcing them to close, as concerns grew about the poor Arab countries stability.

Reports:

Non-Manufacturing Index........9:00 am (CST)
My swing numbers for 12/6...February Gold....

RESISTANCE # 2..................$1135.00
RESISTANCE # 1..................$1127.00
PIVOT.................................$1121.00
SUPPORT # 1.......................$1112.00
SUPPORT # 2.......................$1107.00

Mike Daly /Gold Specialist
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