This week the precious metals have been supported by the turmoil in Egypt. Today it has been reported that President Mubarak has indeed stepped down as President has relinquished his powers to the Egyptian military...As vice President Omar Suleiman prepares to take control of the government. This is obviously very significant to the region as its geography and affiliation with the SuMed pipeline is vital to maintaining a steady flow of Crude oil throughout the middle-east. The early reluctance of former President Mubarak resignation Has caused demonstrating and rioting in the streets of Cairo as a protest to countries high poverty level. The markets have certainly reflected the Egyptian crisis Much of the investor concern to protecting the SuMed pipeline against possible attack due to the civil unrest.... The SuMed stretches over 200 miles and transports crude along the Suez Canal.

Obviously if the pipeline is disrupted it could send the price of Crude oil sky rocketing and higher Crude prices will be Bullish for precious metals. Hopefully the transfer of power to vice president Omar Suleiman will help calm the region..however, there are reports that several other countries in the region are also unhappy with their government leaders...

Thursday the Department of Labor reported that the number of Americans filing first-time claims for unemployment insurance fell to its lowest level since July 2008. INITIAL JOBLESS Claims fell 36,000 to 383,000.... This was much better than the analyst projections of 410,000.....

On Wednesday:
Bernanke gave a testimony before the House Budget Committee and below are some of the highlights.....
*Inflation made here in the U.S is very very low
*Markets don't expect inflation
*While there is growing inflation in emerging markets
the U.S financial markets are not exhibiting any sign of panic

Tuesday 2/7
Once again China raised rates over night however, savvier investors chose to buy the precious metals in anticipation to a report that will indicate an acceleration in inflation to the fastest pace in 2 ½ years.... Inflation is bullish precious metals historically......As gold bugs we are aware that during times of crisis the precious metals tend to retain value better than most commodities...

This week the April (Globex) contract covered a $24.90 range... Trading as HIGH as....$1369.00 and as LOW as $1344.10........... Despite a change in Egyptian government I do not expect their transformation to be seamless......keep an eye on this region.....

MY SWING NUMBER FOR MONDAY 2/14

APRIL GOLD
RESISTANCE # 2..........................$1376.00
RESISTANCE # 1..........................$1368.00
PIVOT..........................................$1361.00
SUPPORT # 1.............................$1353.00
SUPPORT # 2.............................$1346.00
VOLUME 2/11............................118,000

SILVER
RESISTANCE # 2.........................$30.57
RESISTANCE # 1.........................$30.26
PIVOT.........................................$29.97
SUPPORT # 1.............................$29.66
SUPPORT # 2.............................$29.37

Mike Daly / Gold Specialist
PFG BEST
mdaly@pfgbest.com
312-562-8029
877-294-4669