Another All-Time High This Week..
This week the December Gold futures contract traded A range of $135.90 as well as notching another all-time High trading $1817.60 per ounce on Thursday 8/11.... This week traders and investors alike have been trying to decipher the impact of the downgrading of the U.S credit rating from AAA -AA will have on th global economy... Early on in the week I believe the downgrade almost started a panic buying frenzy as investors were choosing Gold as their currency of choice /"safe haven" alternative investment choice. Anyone who know Gold knows that during times of economic uncertainty Gold historically retains its value better than most other commodities....The fragility in the European Union in my opinion is causing greater global investor concern simply due to the lack of straight forward news we are getting out of the region...
Noteworthy News this week:
Today's December Gold futures market notched yet another All-time high trading as high as $1816.60.... The market sold off hard starting with rumors of the CME GROUP possibly raising margin requirement and continued to fall when the possibility became a reality. The raising of margins makes it more expensive to hold trading positions therefore causing many traders to sell-off long positions in order to meet their margin requirements...
As I have been stating for months we are very top heavy and in need of a correction in order maintain the integrity as well as the liquidity of the market...I still believe the global investors will seek Gold as their currency of choice as these turbulent economic conditions worldwide have investors using Gold as their 'safe haven " alternative investment... Gold historically retains its value better than most commodities during times of economic crisis....These mammoth trading ranges continue to reflect the lack of confidence and instability of the European Union , united States, and growing concerns with China's HIGH inflation......
JOBLESS CLAIMS FELL FROM 402,000 -395,000.....
As a long time Gold bug (since 1979) I have never witnessed these mammoth ranges on a daily basis. Obviously we continue to trade in unchartered waters as the recent U.S downgrading continues to shatter the confidence of global investors. We are all aware the economy is not where it should be and that we need to start taking care of matters here at home. The European Union remains extremely fragile and conditions seem to change minute to minute...Both these scenarios are wreaking havoc on the stability of the global economy.... As the uncertainty heightens so does the price of Gold...
Since July 1st we have rallied $301.50 from HIGH to LOW..... Gold is certainly the hottest commodity on the planet presently and it reflects the global economy and also proves how much savvier the world's investors have become. The new investor understands that during times of economic uncertainty both Gold and Silver retain their value better than most other commodities.....
Despite much lower Crude oil prices the Gold is being bought as a "safe haven" alternative investment....In other words Gold is becoming the world's currency of choice....In order to protect their wealth !!! This is not the 1980's Gold market ! This is a worldwide frenzy !!!! Nothing goes straight up forever !!! But until the global situation improves the "trend is your friend ".....it is very important to very disciplined when trading these markets by using stop-loss and profit objective orders...This market is extremely top heavy !!!!
News from FRIDAY
The Standard and Poor's downgrade for the United States Credit rating from AAA - AA+ was the fuel that propelled this Rally to historic levels... The downgrade sent a message of Instability to the world's investors and a warning that even the world's largest economy is susceptible to a debt crisis... On July 1st the December Gold contract closed at $1481.00. Since then we have rallied $241.90 in about 5 weeks.... The U.S legislators have no one to blame but themselves. During the final days before agreeing on a debt crisis "BILL" the Bi-partisan bickering and public antics only highlighted the the uncertainty and political divide that is in my opinion destructive to America as a whole....and preventing our return to greatness......We as a country need to focus on our unemployed and our housing sector in order to get our economy on the right path.....In other words having everybody pulling on the same side of the rope..... As long as there is global uncertainty there will be savvier investors running to the Gold market as a "safe haven" alternative investment. Historically both Gold and Silver retain their value better than most commodities during times of economic uncertainty ....
MY SWING NUMBERS 8/15
RESISTANCE # 2............$1791.00
RESISTANCE # 1........... $1766.00
SUPPORT # 1................$1721.00
SUPPORT # 2................$1701.00
Mike Daly / Gold Specialist
There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.