Another wild week in the precious metals

Gold settled at $1428.60 for the week as African and Middle East tensions continue to support the precious metals. The escalating violence in Libya and reports that demonstrations are spreading throughout the Middle East has traders and investors Alike choosing both Gold and Silver as their alternative “safe haven” alternative investment. The chaos in Libya has shut down that countries ability to supply Crude oil to the world and therefore has fueled the sky rocketing price of Crude oil. April Crude oil traded as high as $104.60 per barrel at the time of this posting. Higher Crude oil prices are very inflationary and are “bullish” for Gold and Silver prices. Historically Gold and silver retain their value better than most commodities during inflationary periods.  Yesterday it was reported that the Libyan government had accepted a plan proposed by Venezuelan President Hugo Chavez to help negotiate an end to the conflict in Libya. It appears that the only way for the rebels to agree to a negotiation is for  Libya’s leader Muammar Gaddafi to step down or go into exile…..it doesn’t look like that will happen voluntarily.

Also:

The U.S dollar fell to a four month low versus the Euro.  The Dollar has struggled under the weight of higher crude oil prices and good jobs data.

In addition Fitch ratings are expected to revise Spain’s bond rating from stable to negative.

THIS WEEK

The department of labor announced the unemployment rate dropped  1/10 of a percent to 8.9%….better than the projected 9.1%.

Thursday…..

According to the Department of Labor…Initial Jobless  Claims fell by 20,000 to 368,000 for the week ending 2/26….  This was far better than the 395,000 that was projected….

There are reports that Iran’s security forces are clashing with  government opposition supporters in Tehran causing further  investment concerns of tension regarding the flow of oil from Iran

European Central Bank boss Jean-Claude Trichet  Indicated that the ECB may raise interest rates in April……

Wednesday’s gold session notched another all-time high as the  Globex April contract traded $1441.00 per ounce…..

Friday’s Silver session notched a 31 year high as Globex  (May) contract traded $35.40.5 per ounce…..

MY SWING NUMBERS MONDAY 3/7

APRIL GOLD

RESISTANCE # 2…………………..$1444.00

RESISTANCE # 1…………………..$1436.00

PIVOT………………………………….$1425.00

SUPPORT # 1……………………….$1417.00

SUPPORT # 2……………………….$1406.00

Volume………………………………..121,000

MAY SILVER

RESISTANCE # 2……………………$36.15

RESISTANCE # 1……………………$35.74

PIVOT………………………………….$34.97

SUPPORT # 1……………………….$34.56

SUPPORT # 2……………………….$33.79

Mike Daly / Gold Specialist

PFG BEST

[email protected]

312-563-8029

877-294-4669

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