GOLD CONTINUES TO AMAZE....

Today the December Gold futures contract traded a vast $56.90 range and notched yet another All-time high as it traded as high as $1881.40. This week the December Gold traded a range of $150.60 from a low on Monday of $1730.80 to today's record High of $1881.40 ...Truly amazing !

The world's investors and traders alike have been using Gold as an alternative safe haven choice in order to protect their wealth during these chaotic economic times. It has become apparent that the fragility in the European Union's debt crisis have the New York Federal reserve questioning the stability of the Euro Region Banks....This along with the U.S Dollar notching a new record low versus the Yen has investors questioning the stability of the world's economy. This week's rally has been supported by a huge underlying demand to buy physical bullion... The trend is your friend and until economic data changes expect more of the same. As I have stated for months this Gold market remains TECHNICALLY OVERBOUGHT and very top heavy. So be warned ANY U.S Dollar friendly news could start a profit taking sell-off....However, gold will remain resilient in my opinion simply because of its historic record of retaining its value better than most commodities during times of economic chaos.

Noteworthy News This Week :

Thursday:

Traders used the continued fragility of the European Union's Banking system chaos to use Gold as their flight to safety choice. Reports that the Federal Reserve of New York was concerned that the European Union was not doing enough to subdue the European debt crisis. Also this week news from the European Union's economy has hit a wall and adding to the global economic fears stating The Gross Domestic Product for the 27 nations that use the EURO Grew at a combined quarterly rate of 0.2%...It was the weakest growth rate in two years.......

Also adding to the buying frenzy was a release from the U.S. Department of Labor stating that the Initial Jobless Claims Rose by 9,000, to 408,000......

Tuesday :
Germany's Chancellor Angela Merkel and French President Nicolas Sarkozy are meeting in Paris to discuss new measures stabilizing Euro region debt and calming global investor fears. It certainly seems fitting that the leaders of the TWO strongest economies in the region and shouldering much of the burden will be meeting to solve the debt crisis that is the European Union...

Monday :
Today's Gold day session covered a $28.00 range. Gold rallied mid to late session as a weaker U.S. Dollar, Higher Stock, and Crude Oil prices started a buying frenzy. Gold has kept its resiliency due to underlying demand for physical bullion. The Wedding & Festival season for India will begin in full swing in September. Since India is the globes largest consumer of Gold annually I expect the the Jewelers of India to purchase Gold and Silver in vast quantities to meet the almost insatiable demand of the season. The WGC (World Gold Council) reported that the amount of Gold currently held by the public in Vietnam was estimated to be about 500 tons. There has also been an increase in demand for coins and bars world-wide. With the continued fragility in the European Union and a loss of confidence in the U.S. Dollar it is easy to see why global investors are choosing Gold as their safe haven currency These are certainly interesting times in which we live. So when trading these precious metals it is imperative that you respect these levels and use stop-loss orders every time !
WE ARE IN UNCHARTRD WATERS....!!!!
OVERBOUGHT OR NOT...THE MARKET IS ALWAYS RIGHT !!!

MY SWING NUMBERS FOR MONDAY 8/22
RESISTANCE # 2.........................$1910.00
RESISTANCE # 1.........................$1882.00
PIVOT.........................................$1853.00
SUPPORT # 1............................$1824.00
SUPPORT # 2............................$1796.00

Sign up for my webinar 8/25......
Mike Daly / GOLD SPECIALIST
PFG BEST
mdaly@pfgbest.com
312-563-8029
877-294-4669

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