Gold Settles $22.80 Higher… ($1243.10)

The stampede to safer havens continued today as the gold market claimed new highs as the uncertainty in the European states drives investors toward tangible hard asset investments.

Despite being technically over-bought the latest rally is fueled by the insatiable global demand. Investors have indicated concern regarding the vast amounts of currency that will be printed as well as the ability of the smaller EU countries to significantly cut their deficits. Anytime you print more money it becomes worth "LESS" and sparks the concerns of pending inflation.  During inflationary periods Gold has a tendency to outperform other commodities. Trichet was asked whether the financial crisis has changed "it is not the same crisis but tensions are continuing.

At the beginning we had financial turbulence in 2007, then in mid 2008 we had an intensification of the crisis which hit the private sector worldwide and now we are in an episode where the creditworthiness of governments have been called into question and we are taking appropriate decisions". Asked if the debt crisis was over…Mr. Trichet said "We need to remain vigilant" "it will depend on the capacity of public authorities and the private sector to take the appropriate decisions".
The march U.S Trade balance was a deficit of $40.4 billion. The deficit with China grew by $300 million to $16 + billion…..

Reports 5/13
Initial Jobless Claims…………….7:30 am (CST)
Export Sales…………………………7:30 am (CST)

My SWING NUMBERS FOR 5/13 …JUNE GOLD

RESISTANCE # 2………………$1262.00
RESISTANCE # 1……………..$1251.00
PIVOT ………………………….   $1239.00
SUPPORT # 1 ………………….$1230.00
SUPPORT # 2………………….$1216.00

Mike Daly / Gold Specialist
PFG BEST
[email protected]
877-294-4669
312-563-8029

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