Gold Settles $13.50 Lower…. ($1214.60)

Gold traders continued to take profits as the news from the European Union continues to leave investors bewildered. The news out of Germany continues to shake the confidence of the savviest investor. Bafin (Germany's  financial services regulator) has announced it will introduce a temporary plan to ban  short selling at midnight tonight…The ban will apply to naked short selling and naked credit default swaps  of Euro region government bonds starting at  midnight tonight and in effect until March 31st ,2011.

There is certainly a new wrinkle every day. The gold has been a safety haven for many global investors and has been the primary fuel to the rally. However, today's news from Bafin has investors nervously taking profits in anticipation to the reaction of the pending ban.

It certainly is a very stringent measure in hopes of supporting the Euro. They need liquidity in their region….this will reduce liquidity as market makers will be forced out…..

The PPI…unexpectedly dropped 0.1% in April… Housing Starts were better than expected and reached Its highest mark since October 2008.

Housing Permits fell 79,000…lowest since November 2009.

Reports 5/19….

CPI………………….7:30 am (CST)

Real Earnings….7:30 am (CST)

My Swing Numbers 5/20….June Gold

RESISTANCE # 2……………$1239.00

RESISTANCE # 1………    ..$1227.00

PIVOT ………………………….$1217.00

SUPPORT # 1……………….$1205.00

SUPPORT # 2……………….$1195.00

Mike Daly /Gold Specialist

PFG BEST

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