Gold Closes $7.10 Lower Today… ($1409.00)

Today's (Globex) March contract notched another all-time high trading $1432.50 and covering a very apprehensive and volatile $29.50 range. After a stall in the "bullish ' momentum I believe traders began to take profits as the unchartered territory of new all-time high's created a nervous tension resulting in a race to take profits….as we approach the year end i suspect we will see some more profit taking as many financial funds and portfolio’s will probably look to put profits on their books.

The gold traders are still concerned with the probability of the Peoples Bank of China raising their interest rates once again before this calendar year is over…If the China bank does raise rates it should send both gold and silver tumbling short term…. it will be interesting to see if today's sell-off brings bargain hunter buying from the Asian sector tonight…There has certainly been a distinct pattern of buying dips from the Asian sector…

Silver covered a $1.17.5 range today and unlike gold managed to close positive (.42 cents higher) settling at $29.77… Silver made another 30 year high trading as high as $30.75…. (March Globex)…

The Fragility in the Euro region is the fuel behind the strong U.S dollar and is also recruiting savvier investors to use their weaker Euro's to buy both gold and Silver as a flight to "safer havens"……

MY SWING NUMBER February Gold

RESISTANCE # 2…….$1445.00

RESISTANCE # 1…….$1427.00

PIVOT…………………..$1415.00

SUPPORT # 1…………$1397.00

SUPPORT # 2…………$1385.00

MY SWING NUMBERS March Silver

RESISTANCE # 2…….$31.20

RESISTANCE # 1…….$30.49

PIVOT ………………….$30.03

SUPPORT # 1………..$29.31

SUPPORT # 2………..$28.86

Mike Daly / Gold Specialist

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