Gold Settles $15.00 Higher... ($1631.20) December

Today's August Futures traded another all-time high trading as high as $1634.90....For the month of July August Gold traded a range of $156.60..AMAZING !!!

Today's December futures contract covered a $24.50 range As trader once again maintained a watchful eye on Washington anticipating some news that Legislators would Be able to strike an agreement in order to put this Chaotic Bi-partisan "standoff " regarding the raising of the U.S debt ceiling behind us.....Once again there are rumors and high hopes but NO DEAL !!!! During a mid -morning speech from President Obama He was quoted as saying "The House of Representatives plan has no chance of becoming law" and he urged both Democrats and Republicans to reach a compromise on behalf of the American people now..... he was also quoted as saying "This is not a situation where the two parties are miles apart" But we are running out of time"........

This should be a very interesting weekend in Washington. The ramifications of a non passage of a debt ceiling bill may be catastrophic....I am still hopeful (not as confident) that ego and putting the party first will be set aside in order to reach an agreement...otherwise I truly believe this will not be forgotten come election time ! I guess we'll all know very soon....The deadline is Tuesday August 2nd .......

Noteworthy Weekly News: :

Thursday :
Traders are split in their opinions regarding the passage of the bill. Believe it or not there are traders positioning themselves in the market anticipating a default and credit downgrade from AAA to AA.... It is almost unbelievable to me that the world's largest economy would want to set that kind of example to the world. The two parties both Democrats and republicans alike need to come together and get this debt ceiling thing done !

On a better note today's initial jobless Claims data was Better than expected as the United States Department of Labor reported that first time claims were 398,000 that was much better than the 415,000 that was projected.....

Wednesday:
August futures traded $1628.80 early in the day session as trader speculation regarding a non-agreement regarding the debt ceiling fueled another rally and all-time high in the Gold market. Mid-session traders took profits as the market ran out of momentum due in part to news stating the U.S Legislators may be getting closer to an agreement. Also according to Standard and Poor's President Deven Sharma......

Also Standard and Poor's downgraded Greece again !!! They were downgraded from CCC - CC.................

NEWS WIRES (Sacramento B) WASHINGTON -

 The head of a top credit rating agency says that some of the deficit-cutting plans being considered by Congress  could bring the U.S. debt burden down to a level that would allow the country to keep its triple-A credit rating. Standard & Poor's President Deven Sharma told a congressional panel on Wednesday that previous reports indication that Congress would need to achieve $4 trillion in deficit cuts over 10 years to retain the country's top credit rating were inaccurate............................

Tuesday:
An agreement by United States Legislators to raise the debt ceiling may be creeping a bit closer. It is evident that the pressure is on the President and congress to get an agreement done. Gold has been fueled by the global uncertainty causing prices to trade all-time highs... If the U.S which is the largest economy in the world defaulted on its payrolls in my opinion it could cause a global financial shockwave that would shake the world's economy... I believe the U.S legislators are well aware of the ramifications as well as they're political futures if this agreement does not get done! So in my opinion I believe traders are trading the news and rumors And since there has been little clarity regarding the debt ceiling today it made traders cautious ....

There are reports that the citizens of Syria have once again. Taken To the streets of Damascus in opposition to that nations government régime...Reports claim almost 1.5 million citizens are involved.... There is a Media blackout....and denials from Syria....!!!!!

Monday:
Traders and investors globally used the United States raising of the debt ceiling political "standoff" as speculation that the world's largest economy may not be able to pay it's 'bills" as the August 2nd deadline rapidly approaches. It appears that both Republicans and Democrats are waiting for the other to blink first. Meanwhile the political "Mexican Standoff" are creating world tension as well as "HIGHER" Gold and Silver prices as savvier investors are choosing the precious metals as their "safe haven" investment as well as their currency of choice... Both Republicans and Democrats are preparing proposals (debt ceiling) maybe as early as today! With all the fragility in the European Union and the rising inflation in China having the U.S Legislators unwilling to come together to approve a raise in the U.S Debt Ceiling has rallied Gold prices $146.00 since July 1st .... On July 1st  August Gold traded as low as $1478.30....And today August Gold traded another all-time high of $1624.30............. As long as there is dissention between U.S legislators I expect the prices to remain high...I think most of us believe that cooler heads will prevail and there will be an agreement for the good of all before the August 2nd deadline....

MY SWING NUMBERS 8/1

DECEMBER GOLD
RESISTANCE # 2....................$1650.00
RESISTANCE # 1....................$1641.00
PIVOT....................................$1627.00
SUPPORT # 1........................$1617.00
SUPPORT # 2........................$1603.00
VOLUME.................................128,000

SEPTEMBER SILVER
RESISTANCE # 2....................$41.00
RESISTANCE # 1....................$40.60
PIVOT....................................$39.95
SUPPORT # 1........................$39.48
SUPPORT # 2........................$38.37
VOLUME................................42,000

Mike Daly / Gold Specialist
PFG BEST
mdaly@pfgbest.com
312-563-8029
877-294-4669

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