DECEMBER GOLD SETTLES .50 CENTS AT $1747.20....

This week the December Gold Futures contract covered a $117.40 trading range. Speculators and investors continued to choose both Gold and Silver as their safe haven investment choice. With no clear direction from the European Union's two part summit it is clear that the global investment community is disenchanted with the financial leadership. There appeared to be some early profit taking Friday as the fragility and uncertainty in the Euro Region seem to change from day to day traders are taking profits instead of holding positions over the weekend. The volatility in the precious metals remains high... Historically September is one of the best months and October is historically one of the worst. This year it was exactly the opposite. This has taught long time Gold bugs to adapt, improvise, and overcome. In other words take profits when available and not hold positions over the weekend....

News from the week :

Thursday:
Standard and Poor's cuts the rating of Cyprus (euro currency member) to BBB from BBB+; may be further cuts upcoming.... Germany's Chancellor Angela Merkel says the summit created a good general package but there are many more steps to take; euro area debt reduction is the ultimate goal.. The weekly report on Initial Jobless Claims is 402,000 This was projected to be 401,000..... The global investment community continues to be
uncertain and disenchanted with the world's financial leaders. Many investors are learning that fiat currencies just paper... This is why the precious metals has a greater appeal... They are tangible assets !

Wednesday:
Traders are awaiting reports from today's EU Summit in Brussels. The meeting began at 12:15 CDT and all of the world will be waiting for the results.... Since September 26th  through today's day session the December Gold contract has covered a range of $198.00. Investors and speculators alike are choosing the precious metals as their safe haven' alternative choice. Gold bugs know that historically Gold and Silver retain their value better than most commodities during times of economic uncertainty................ News / rumors of the FOMC approving a QE 3 persist. Anytime you print more of anything it becomes worth- LESS. Weaker USD is Bullish Gold and Silver.... Which is also helping to fuel this rally. Rumors and apparent news leaks will run rampant during the length of the Summit meeting ! There are also a vast amount of U.S. economic data due to be released tomorrow morning. This is probably the reason the volume was moderate.

Monday:
Today's trading volume was light as traders look toward Wednesday's European Union Summit will reconvene. The past weekend's Summit had failed to come up with a solution to the European Union's continued debt fragility. According to the European Commission President Jose Manuel Barroso Wednesday will mostly be Dedicated to Greece, on Banks, on leveraging EFSF (European Financial Stability facility)and governance. Higher Crude oil prices helped to fuel the Gold rally as December Crude Oil futures traded as high as $ 91.88 a barrel today...traders may be using Gold as a safe haven investment as the possibility of QE 3 is back in the news....

MY SWING NUMBERS 10/31

DECEMBER GOLD
RESISTANCE # 2................$1766.00
RESISTANCE # 1................$1757.00
PIVOT ...............................$1745.00
SUPPORT # 1....................$1735.00
SUPPORT # 2....................$1724.00

DECEMBER SILVER
RESISTANCE # 2.................$36.22
RESISTANCE # 1.................$35.75
PIVOT .................................$35.23
SUPPORT # 1......................$34.77
SUPPORT # 2......................$34.24

The markets always right !

Mike Daly / Gold Specialist
Research Division
PFGBEST.com
mdaly@pfgbest.com
312.563.8029
877.294.4669

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