DECEMBER GOLD SETTLES AT $1814.70 FOR THE WEEK
This week the December Gold Futures contract traded a $99.80 range with a high of $1865 and a low of $1765.40. The week was full of technical trading as traders tried to decipher the economic data of the week. The European Union's continued fragility. The situation in Greece continues to put a drag on the Euro. The weaker Euro has lent strength to the U.S Dollar which has halted the rally momentum of the Gold market this week.
The FOMC will meet next week and all eyes will be awaiting that news.
News From The Week :
Today's Initial jobless Claims number was 428,000. This was expected to be 411,000.... Also it was reported that the European Central bank will Lend U.S Dollars to Euro - region banks to ensure they Have enough of the U.S currency...That is also slowing demand for safer haven assets such as Gold......
European Union continues to reflect the fragility in the region. Greece continues to be at the center of the storm as the regions Financial Ministers are lending moral support but continue to state that there is NO PLAN B for Greece. In other words it's up to Greece to the Greek Government to get their own financial house in order. The fragility is affecting the Euro and lending slight strength to the United States Dollar. This is slowing Gold's momentum recently. The daily ranges in the precious metals have been vast as traders continue to look for direction. I expect this trend to continue.
Today the President announced that he would be sending the America's Job act BILL to congress yesterday and there are some key economic data scheduled to be released tomorrow morning. The see-saw ranges result of speculation and uncertainty amongst traders. I also believe the physical demand is higher after yesterday's mammoth sell-off. Savvier investors as well as India's jewelers have been active lately buying price dips in the overnight market.
Once again the continued fragility in the European Union especially Greece has traders looking to fade the Euro and therefore lending strength to the U.S Dollar. The investor community primarily traders are viewing the technically overbought status of the Gold and are taking short term short positions (day trade scalping) that have resulted in setting off STOP-LOSS orders that are helping to fuel the mammoth sell-off....I expect many Gold Bugs to view this recent price dip as bargain buying opportunity.... Buying the price dips has been the trend for the past 4 years !!!
MY SWING NUMBERS FOR MONDAY 9/19
RESISTANCE # 2..............$1862.00
RESISTANCE # 1..............$1839.00
SUPPORT # 1..................$1778.00
SUPPORT # 2................. $1742.00
Mike Daly / GOLD SPECIALIST
There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.