Today’s February Gold contract closed above $1200.00 notching another all-time high. (Comex $1200.50 & Globex $1204.00) The Gold continued its momentum due to the continued weakness of the U.S Dollar and international diversification away from the greenback. The recent purchases of IMF Gold by India, Sri Lanka. and Mauritius at these lofty levels has certainly showed a lack of confidence in the Dollar. India is the worlds largest consumer of gold however, the World Gold council indicated that China is on track to surpass India as the world’s largest consumer. The Chinese appear to have an insatiable appetite for precious metal and are the worlds leading producer of Gold and are certainly building there reserves at a torrid pace. They are currently the fifth largest holder of Gold reserves.

(1) United States
(2) Germany
(3) France
(4) Italy
(5) China

Look for the gold volatility to continue especially with the “Debt Freeze” concerns still pending. In fact the entire commercial real estate sector is in global turmoil.

My Swing numbers for 12/02 February Gold…
RESISTANCE # 2………$1222.00
RESISTANCE # 1………$1212.00
PIVOT……………………$1194.00
SUPPORT # 1…………..$1184.00
SUPPORT # 2…………..$1166.00

Mike Daly / Gold Specialist
PFG BEST