The U.S Dollar continued its decline today that began off of Friday's very disappointing U.S unemployment number. The U.S Jobs market lost 85,000 jobs in the month of December. The slide continued after the Chinese export figures revealed an 18% jump certainly much better than the 5% expectation. This number is inflationary and sent investors to the safe haven Gold market. The World Gold Council announced that Gold sales across the Middle-east will considerably pick up in 2010 thanks to better market conditions and rising demand for Gold. The Middle-east has become a huge consumer of Gold (90% is used for jewelry) behind both China and India. The world is learning that Gold is a tangible asset and a world currency that carries no liabilities. Technically the Gold was trading through both of my resistant levels before the New York Comex markets opening bell. It appears the Gold Bugs have regained their appetite for the precious metal. Based off of Friday's unemployment data most experts believe the FOMC will leave rates low.

REPORTS:
U.S. TRADE BALANCE.....7:30 am (CST)
SWING NUMBERS 1/12...FEBRUARY GOLD
RESISTANCE # 2...........$1175.00
RESISTANCE # 1...........$1163.00
PIVOT .........................$1151.00
SUPPORT # 1...............$1139.00
SUPPORT # 2...............$1127.00

Mike Daly / Gold Specialist