The Volatility Continues

This past week has produced another very volatile and choppy trading range ($28.80) that continues to trade in a technical manner drifting between support and resistance levels. During the course of the week we traded as low  as $1175.10 (7/20) and as high as $1203.90 (7/23). The Gold market closed lower for the second straight week as investors seem less concerned over the stability of global economy. This has caused a reduction in the purchase of physical bullion. The U.S mint reported the sale of American Eagles were at 98,000 thus far in July. Sales were at 190,000 just two months earlier.....

The demand for the precious metals remains high Globally however, many world investors are hoping for a price pull back prior to reentering the physical market. This is particularly true in regards to the jewelers of India as they will need to purchase a sizable amounts of Gold in preparation for the upcoming Festival and Wedding seasons beginning in September. Since India is the largest consumer of Gold in the world I expect the demand to be renewed.

Despite a better than expected Stress Tests there is still concern that the financial stress tests' are not rigid enough. Moody's Investors Service put Hungary's debt rating under review for a possible downgrade as European Union and the International Monetary Fund where not convinced that the nations deficit reduction plans were sustainable...

There continues to be plenty of uncertainty in the region and despite the stress test results the Euro region is still very fragile....

The weekly jobless claims is 464,000 analysts predicted this number to be 445,000 .....

The Gold is experiencing the summer dull drums.... as we Gold bugs will attest we were in a very tight and boring range last summer as well. We also recall the market rallied from Labor Day weekend until December 3rd ....

Mike Daly / Gold Specialist

PFG BREST

mdaly@pfgbest.com

877-294-4669

312-563-8029

*THERE IS EXTREMTE RISK TRADING FUTURES, OPTION, and FOREX*