This week the December Gold futures contract covered a $88.30 range trading as high as $1769.50 and as low as $1681.20. the focus for the week was primarily on the Greece / European Union fragility. The Greek Parliament is ready to vote on Friday to render their verdict on Prime Minister George Papandreou's call for government unity To decide the fate of Greece's bailout and membership in the European Union. The Gold market has rallied this week as traders and investors are choosing the precious metals as their safe haven alternative investment.

This week it seemed like the news from the Euro Region was changing minute to minute. Rumors flied adding to the global investor uncertainty. During times of economic chaos the precious metals historically have retained their value better than most other commodities has been state d without an added financial bailout Greece will run out of funds in December .


The October reading of the Unemployment Rate was down one tenth from the month before to 9.0%, the lowest result since April and breaking a string of five months when the result was 9.1% or 9.2%. ....

Today's December Gold Futures traded a vast $44.30 range with a High of $1768.30 and a Low of $1724.00 as traders and investors world-wide watch as the Greek parliament readies to vote on their referendum. The news from Greece has been changing seemingly minute to minute. Early on their reports that Greece's Prime Minister George Papandreou had resigned. Then reports denied his resignation. According to FOX NEWS: Europe-World Website: Prime Minister George Papandreou ignored widespread calls for his resignation and instead invited the opposition to join negotiations on the bailout, telling an emergency Cabinet meeting that early elections would force Greece into leaving the 17-nation euro currency, with disastrous effects for both Greece and other European economies...

Papandreou sparked a global crisis Monday when he announced he would put the latest European deal to cut Greece's massive debts - an accord that took months of negotiations -- to a referendum. The idea horrified other EU nations and Greece's creditors, triggering turmoil in financial markets as investors fretted over the prospect of Greece being forced into a disorderly default All eyes will be on the vote !

Meanwhile investors and traders continued the flight to safer haven alternative investments primarily Gold and Silver. Just 6 short weeks ago the December Gold was traded as low as $1535.00...... Initial Jobless Claims was better than expected: The weekly report on Initial Jobless Claims is 397k This was projected to be 400k.

Traders and investors alike tried to decipher the days data from both the European Union and from the FOMC. The FOMC continues to talk about solutions however, there does not seem to be a clear direction in their decision making. The indecision from both the FOMC and the inability of the Euro Region to come to an amicable solution has heightened consumer uncertainty....

*Fed repeats exceptionally low rates through at least 2013
*They reiterate significant downside risks to economic outlook
*Expect moderate pace of growth in the future quarters.....

The fragility of the European Union continues as Greece's Parliament begins debate on government confidence motion; That will be decided by roll call vote by midnight Nov. 4... It appears that the implication of a NO vote is well understood, if the Greek Parliament vote down the bailout deal, then any vote on remaining a member of the European Union may not be ratified.... These next few days will be very interesting !

Today's December Gold Futures contract traded a $41.00 range as news that MF Global filed chapter 11 Bankruptcy protection and leaving behind over 2 Billion Dollars in debt to some of Wall Street's largest institutions including JP Morgan Chase and Deutsche Bank. Bad investments linked to the European Union's financial crisis are being cited as the cause for MF Global's chapter 11 filing.... Equity markets and the precious metals sold off
due to a weaker Euro and stronger U.S Dollar.... December Gold traded as High as $1746.50 an as Low as $1705.50 in the combined overnight/day sessions....The MF Global news reflects just how much the European Union's financial fragility is effecting the overall economy of the world. Volume was light in the Gold market as investors appear to be reluctant to jump into this latest fire! The CME Group has limited MF Global trading to liquidation only


RESISTANCE # 2.................$1774.00
RESISTANCE # 1.................$1764.00
PIVOT .................................$1757.00
SUPPORT # 1......................$1748.00
SUPPORT # 2......................$1740.00

Mike Daly / Gold Specialist
Research Division
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