Gold Settles $1.40 Lower … ($1227.80)

The gold market took investors on a roller-coaster ride today as the Euro debt crisis continues to drive the precious metals. Today's trade covered a $32.10 range including another new contract high ($1249.70). Many investors took profits mid-session as the news out of the Euro region continues to leave seasoned traders uneasy.

The U.S Dollar versus the Euro is trading below 1.2499 for the first time since the end of 2008. German Chancellor Merkel was quoted as saying "Europe is in a very, very serious situation and success is not yet guaranteed "and added "we'd be in a worse situation without the EU and Euro".

There were reports that French President Nicholas Sarkozy had threatened to pull France out of the Euro… Sarkozy's aids later denied that report…. No wonder the investors are nervous!

Gold has been the currency of choice around the globe. Savvy investors have lost confidence in all paper currencies and have flocked to the precious metals as a "safer haven" The Gold market did sell-off (trading as low as $1217.80) but in my opinion we are in need of bigger correction to keep the integrity of the market refreshed.

However, the global investor demand for gold is driving It to these record levels….The EU needs to right their ship and calm the fears of the world…

MY SWING NUMBERS …Monday 5/17….JUNE GOLD

RESISTANCE # 2………….$1264.00

RESISTANCE # 1………….$1246.00

PIVOT…………………………$1232.00

SUPPORT # 1……………..$1213.00

SUPPORT # 2……………..$1200.00

Mike Daly / Gold Specialist

PFG BEST

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*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, AND FOREX*