The Metals Remain Resilient….
All week long Legislators and investors
world-wide were looking toward this week’s
Unemployment data with anxiety and anticipation.
Thursday’s Initial Jobless Claims dropped by 6,000 –
472,000…..this was better than expected.
However, today’s unemployment data was much
better than expected as The Department of Labor
announced a much slower decline than economists
anticipated. The experts were looking at a 105,000
job subtraction. Instead the decline was 54,000…
This news sent the STOXX Europe 600 Index (European
Stocks) rallied and enjoyed its largest gain in two months..
It also sent the Dow and S&P Higher while triggering a
sell-off in the Gold market. The gold market traded as low as
$1239.20 before charging back to close at $1251.10
for the week. The price dip was an opportunity for some
bargain hunters to re-enter the market at a lower price.
Despite the favorable jobs data the savvy investors
continue to seek the precious metals as an alternative
“safe haven” iinvestment…
Historically Septenber is the best month for Gold.
This is no surprise as this is the month that begins
the Wedding & festival seasons in the Asian sector.
There were some other noteworthy news this week
FOMC MINUTES from the August meeting….
“The preconditions for a pickup in growth in 2011
appear to remain in place”….
“SHOULD FURTHER ACTION PROVE NECESSARY….POLICY OPTIONS
ARE AVAILABLE”
“ The FOMC will do all that it can to ensure continuation of the
economic recovery”
Gold traders are concerned about the possibility of a strike by
the National Union of Mineworkers in South Africa.
South Africa is the number two Gold producer second only
to China…..Traders are concerned about a possible
SUPPLY & DEMAND issue……
The European Union’s Central Bank Jean-Claude Trichet
defended the continuation of low and unchanged rates
and stated the European Central Bank will extend
unlimited loan offerings into 2011…..
Thursday:
FOMC Chairman Ben Bernanke admitted the FED was slow
to identify and address subprime abuses…and continued to say
that Regulators should have done a better job before
the crisis……These are the reasons that investors lack confidence
in the fiat currencies and continue to use Gold & Silver
as “SAFE HAVEN” alternative investments…………
This week traded a very technical $21.60 range….
HIGH…..$1256.60 ………….. LOW…..$1235.00
The volume has been consistently over 90,000….
Today I believe there was profit taking as well as position guarding
Prior to the long 3 day Labor Day weekend….
**MARKETS CLOSED MONDAT 9/6……..**
MY SWING NUMBERS 9/7….DECEMBER GOLD
Resistance # 2………………$1265.00
Resistance # 1………………$1259.00
Pivot ………………………..$1249.00
Support # 1………………….$1241.00
Support # 2………………….$1233.00
Mike Daly / Gold Specialist
PFG BEST
mdaly@pfgbest.com
877-294-4669
312-563-8029
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