GOLD FINISHES THE WEEK AT $1685.70.....

Friday's shortened December Gold Futures Session covered a very volatile and choppy $26.30 range producing a High of $1698.90 and a Low of $1672.60. he European Union received more downgrades as the regions fragility continues to fuel a stronger U.S Dollar. This week the December Gold futures traded Another vast $60.30 range including a High of $1727.40 and a low of $1667.10... Investors continue to choose the stronger U.S Dollar as their currency of choice.

NOTEWORTHY NEWS OF THE WEEK :

WEDNESDAY:
The U.S economic data recently has shown that the United States economy is growing stronger despite the continued slide in the European union..... today the Gold market had all the fundamentals against it including (1) LOWER CRUDE OIL (2) WEAKER EURO (3) STRONGER U.S. DOLLAR & (4) BETTER THAN EXPECTED INITIAL JOBLESS CLAIMS......just to name a few...... Technically Gold broke through a major support level as it traded through $1750.00....Traders are eyeing the next huge support level of $1700.00...The low of today's day session was $1711.00.....

The weekly report on Initial Jobless Claims is 388k This was expected to be 395k.

TUESDAY:
Crude oil prices traded as high as $98.70 per barrel in the January futures market as Iran was subject to new sanctions for continuing to develop nuclear bomb capabilities. Higher Crude Oil prices were also supported do to the rioters in the streets of Cairo , Egypt who are demanding that the military relinquish control and begin the election process for a new Egyptian government... Speculators are concerned that Oil transportation may be interrupted via the SU MED canal.... Crude Oil is very vulnerable to the Geo-political tensions in Oil producing nations.....

Minutes from the FOMC 11-1/11-2 meetings has revealed that some FED members are in favor of more easing....(QE 3 ????). Any time you print more of anything....IT IS WORTH LESS !!!!!!! If they print more Dollars...it should be bullish Gold............

MONDAY:
GOLD SETTLES $46.50 LOWER... ($1678.60) Today's December Gold Futures market produced an avalanche-type sell-off as global investors reacted to the super committee's inability to agree on the U.S spending cuts as the deadline occurs this week...In addition the borrowing price for Spain soared. There are reports from Moody's credit agency warning that France may be susceptible to the European Union debt crisis...All of this negativity sent the U.S Dollar to a six week high and sent Gold prices to its lowest levels since October 24th when it traded as low as $1644.60..... it is certainly become apparent that investors are liquidating their precious metals position in favor of cash............. In my opinion this a sure sign that investors and Traders alike have lost their confidence in the world's Financial leaders ability to right this financial ship....

I expect this volatility to continue as investor confidence In the global financial leadership remains weak....

MY SWING NUMBERS 11/28

DECEMBER GOLD
RESISTANCE # 2......................$1712.00
RESISTANCE # 1......................$1699.00
PIVOT.......................................$1686.00
SUPPORT # 1...........................$1672.00
SUPPORT # 2..........................$1660.00

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