GOLD SETTLES $2.00 HIGHER ... (1859.50)
This week the December Gold Futures contract made another all-time high trading as high as $1923.70. The market traded a very choppy . volatile , and vast $129 range as the global economic uncertainty forced savvier traders and investors to choose Gold as their safe haven alternative investment. The news this week has fueled the investor uncertainty. All eyes were on President Obama Thursday night hoping for a solution to the unemployment woes here in the United States...HOPEFULLY his jobs bill proposal can become a reality and create job opportunities for the unemployed masses... His proposal included a 447 billion jobs plan as well payroll tax cuts for business who create jobs as well as hiring United States Veterans ....This 447 billion plan may meet resistance especially when the U.S has a deficit over a Trillion dollars.
According to Reuters :
European Central Bank Executive Board Member Juergen Stark has stepped down from his post because of a conflict over the central bank's controversial bond-buying program.....
News from the G7 meeting in Marseille, France :
Canadian Finance Minister Flaherty said THERE IS A POSSIBILITY THAT GREECE MAY BE LEAVING THE EURO IF GREECE DOESN'T CONTINUE CUTTING THEIR DEBT..... AN INTERESTING ARTICLE FROM BLOOMBERG:
By Alan Crawford
Sept. 9 (Bloomberg) -- Chancellor Angela Merkel's government is preparing plans to shore up German banks in the event that Greece fails to meet the terms of its aid package and defaults, three coalition officials said.
The emergency plan involves measures to help banks and insurers that face a possible 50 percent loss on their Greek bonds if the next tranche of Greece's bailout is withheld, said the people, who spoke on condition of anonymity because the deliberations are being held in private. The successor to the German government's bank-rescue fund introduced in 2008 might be enrolled to help recapitalize the banks, one of the people said.
The existence of a Plan B underscores German concerns that Greece's failure to stick to budget-cutting targets threatens European efforts to tame the debt crisis rattling the euro. German lawmakers stepped up their criticism of Greece this week, threatening to withhold aid unless it meets the terms of its austerity package, after an international mission to Athens suspended its report on the country's progress.
Greece is on a knife's edge, German Finance Minister Wolfgang Schaeuble told lawmakers at a closed-door meeting in Berlin on Sept. 7, a report in parliament's bulletin showed yesterday. If the government can't meet the aid terms, it's up to Greece to figure out how to get financing without the euro zone's help, he later said in a speech to parliament.
Schaeuble travelled to a meeting of central bankers and finance ministers from the Group of Seven nations in Marseille, France, today as they face calls to boost growth amid increasing threats from Europe's debt crisis and a slowing global recovery.
The German government is awaiting the results of the Greek progress report and will decide what course of action then, a government spokesman said, speaking on customary condition of anonymity.
European bank credit risk surged to an all-time high today and stocks fell worldwide on concern that the debt crisis is escalating. German two-year yields declined to a record as investors sought a haven and Greek two-year note yields added as much as 86 basis points to 55.91 percent, a euro-era record.
Credit-default swaps insuring Greek sovereign bonds jumped 212 basis points to a record 3,238, according to CMA. The five-year contracts signal there's a 92 percent probability the country won't meet its debt commitments.
Countries must act now and act boldly to steer their economies through this dangerous new phase of the recovery, International Monetary Fund Managing Director Christine Lagarde said in a speech in London today. We must not underestimate the risks of a further spread of economic weakness or even a debilitating liquidity crisis, she said. That is why action is needed urgently so banks can return to the business of financing economic activity.
Merkel, who is due to discuss the crisis with European Commission President Jose Barroso in Berlin on Sept. 12, is battling to secure a majority among her coalition bloc to push an overhaul of the European Financial Stability Facility through the lower house of parliament on Sept. 29. The changes would give the EFSF the power to buy bonds in the secondary market, raising German guarantees to 211 billion euros ($290 billion) from 123 billion euros.
Longer term, euro countries will only preserve the common currency if there is more integration in the European Union, Merkel said in a speech in Berlin today. The EU won't be able to avoid treaty change. While intensive discussions lie ahead and the path won't be easy, policy makers shouldn't be afraid of tackling the challenge, she said.
Policy makers in Europe are moving, U.S. Treasury Secretary Timothy F. Geithner said in a Bloomberg Television interview from the G-7 in Marseille. But I think they're going to have to demonstrate to the world they have enough political will.
For Related News and Information:
European crisis monitor: CRISIS
Debt crisis page: EXT4
Top German stories: TOPG
--With assistance by Brian Parkin in Berlin. Editors: James Hertling, Andrew Davis
News From The Week:
There has been bargain buying opportunities off these recent Price dips and it appears the Asian sector (primarily India) has been purchasing bullion on these dips. As we Gold bugs are aware we are in the early stages of the festival and wedding season in India...The demand for the precious metals during this season is almost insatiable. Causing the jewelers of India to stock and re-stock their shelves in order to meet the demand.
The weekly report on Initial Jobless Claim was 414,000... This was projected to be 405,000 ....
European Central Bank Chief Jean-Claude Trichet was quoted As saying DOWNSIDE RISKS TO THE EURO HAVE INTENSIFIED and UNCERTAINTY IS PARTICULARLY HIGH .........
FOMC Chairman Ben Bernanke during a speech in Minnesota Reflected concern over the diminishing confidence from consumers. And added that the FOMC will do whatever it deems necessary to get the jobs and housing sector on track.... He also remained committed to retaining low interest rates for the next two years.........
Today's Gold trade covered a very vast $101.30 volatile and choppy range. The sell-off from yesterday continued as traders took profits and sold short as the market reflected a selling frenzy as support level after support level were blown through adding to the avalanche sell-off. This should not be surprising to anyone who trades Gold. I have been stating how TECHNICALLY OVERBOUGHT & TOP HEAVY this market has gotten. We as Gold traders have been Waiting and hoping this would happen. The market needed a healthy retracement in order to maintain its integrity...
In just over two trading sessions the December Gold Futures Traded another all-time HIGH ($1917.90) and settled at $1757.30 today. Doing the math...that is a $160.60 drop !!! Traders are liquidating speculative positions in anticipation of Friday's Jackson Hole meeting of the central banks...
Nobody can be certain what will come out of Friday's meeting however, most traders feel it is going to be U.S friendly....
ther traders believe it will be an announcement of QE 3...
When President Obama took office Gold futures were trading In the $890's level....So after the debt ceiling fiasco it is my thought that they will try and regain the confidence of the globe. As always when trading the precious metal it is imperative that You trade smart. Use stop-loss and exit orders every time because of days like this !!! This mammoth sell-off may offer a buying opportunity for the jewelers of India who will need to stock their shelves for the upcoming Wedding and Festival season beginning in September...it is my belief however, that savvier traders and investors will wait and see what the Jackson hole meeting reveals.....
ANOTHER ALL-TIME HIGH TODAY as the December Gold Futures contract traded as high as $1923.70 in the over night trading session before an avalanche midsession sell-off taking the market as low as $1861.80....Today's Gold market traded a $61.50 range. TRULY AMAZING !!! Today's market conditions were due to the onslaught of world news and speculation.....
The ongoing global uncertainty has helped Gold and Silver to become the world's safe haven choice...
The continued fragility in the European Union has investors Scrambling for markets that offer a flight to quality.....
The German Finance Minister Wolfgang Schaeuble during a Speech to Parliament warned against continued market turbulence and called on other countries to follow Germany's lead in debt reduction...
He also added that there would be NO more emergency aid to Greece If the nation does not receive a positive result from the IMF and ECB inspectors. The market also reacted to the currency invention rumors ..all session long. Obviously the global investors are concerned with recession on both side of the Atlantic....Also concerns about the HIGH /HISTORIC inflation in China....And the question that is being asked in Libya is WHERE IS MUAMMAR GADDAFI HIDING ? It appears the NTC. Libya's National Transitional Council has made finding the fugitive leader their number one priority....
Libya produces 2% of the world's Crude Oil and has not been producing any since the civil war in Libya began..................
I expect the volatility to continue !
My SWING NUMBERS FOR 9/12
RESISTANCE # 2............$1925.00
RESISTANCE # 1............$1892.00
SUPPORT # 1...............$1826.00
SUPPORT # 2...............$1794.00
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