Another Record High…..
This week the Gold market notched another all-time high ($1381.10) as investors continue to choose gold as their "safe haven" investment and their currency of choice. The Gold market covered a very choppy and volatile $41.00 range this week trading as high as $1381.10 and as low as $1341.10.
We continue to be in unchartered territory and without any previous guidelines. most traders realize that TECHNICALLY the gold market is in "OVERBOUGHT" territory however, the overwhelming appetite to own Gold and Silver has continued to fuel this rally since August 27th 2010when we traded a low of $1160.80….(6 weeks ago)….
Savvier investors have lost confidence with the global financial regulators as well as with the fiat currencies. This coupled with the insatiable buying from the Asian sector to satisfy the Wedding and Festival demand…i expect this to continue until the "DIWALI FESTIVAL" held on November the fifth this tear…
This weeks Initial Jobless Claims data…….. was worse than projected at 462,000…This was projected to be 445,000…Also the reading for the U.S Trade Balance is a deficit of $46.3 Billion above the projected deficit of $44.0 Billion.
Today Ben Bernanke continued to say the same old thing…
The Labor markets recovery is "painfully slow" The risk of deflation is "higher than desirable" The "overall economic e growth is less vigorous than we would like" I believe this to mean "printing more money"…. Anytime you print more…it is worth less….
I expect these huge ranges and high volatility to continue due to global uncertainty….We are all aware of the U.S economic climate as the Housing sector and Job sector continue to be the drag on the economic recovery and should be priority one… There is the continued fragility of the European Union as the stability of their Banking institutions remains a huge concern… The Bank of Japan recently slashed their intrest rates and are printing more yen to help their citizens try to spend their way out of recession… The world's investors have become much more educated during these times of economic crisis….They have realized that during times of economic hardships that Gold and silver have a history of retaining their value better than most other commodities….
GOLD CLOSES AT $1372.00 FOR THE WEEK……
MY SWING NUMBERS FOR MONDAY 10/18 DECEMBER
RESISTANCE # 2……………..$1398.00
RESISTANCE # 1……………..$1385.00
SUPPORT #1…………………. $1362.00
Mike Daly / Gold Specialist
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