February Gold Settles At $1751.30 For The Week.
This week the February Futures Gold market traded very choppy and volatile $80.10 range. Friday’s Unemployment data for November in total non-farm payrolls was +120,000 and The reading of the Unemployment rate is 8.6% better than the 9.0% that was expected. Friday’s trading session covered a $25.40 range including a high of $1767.10 and a low of $1741.70.
Once again the Gold market could not hold early rally momentum and sold off shortly after the release of the 7:30 am (cst) Unemployment data. This week the Gold markets rally has been fueled by the injection of liquidity into the currency markets from the world’s central banks. Also heavy hints from the FOMC suggest there will probably be a QE 3 sooner than later.
The week’s noteworthy news:
Wednesday:
February Gold traded a $54.40 range and settled $31.40 higher as hints of a possible QE 3 sent traders into precious metals as a “safe haven” alternative investment choice.
Anytime there is a hint of more easing (printing more U.S Dollars) it should benefit the precious metals. Whenever you print more of anything it becomes “WORTH – LESS”…
More Dollars would make the U.S Dollar worth-less and therefore add appeal to gold.
Demonstrations in Iran have turned violent as pro-regime militants burdened with an increasing array of sanctions over its nuclear program and their resentment toward the
the west (primarily great Britain and the U.S)… Since Iran is an oil producing nation there are concerns that any escalation in the region will effect Oil production / prices and as a result it appears speculators are pushing Crude oil futures prices over $100 per barrel. Higher Crude oil prices are historically bullish for Gold prices.
It is my opinion that these markets will remain very volatile and trade vast ranges as long as the geo-political tensions in Iran remain high. Also as long as the European Union debt situation remains fragile global investors will remain skittish with their trading strategies. Technically there is very strong resistance up around the $1805.00 level.
MY SWING NUMBERS 12/5
FEBRUARY GOLD
RESISTANCE # 2…………$1778.00
RESISTANCE # 1…………$1764.00
PIVOT ……………………$1753.00
SUPPORT # 1……………$1739.00
SUPPORT # 2……………$1728.00
MARCH SILVER
RESISTANCE # 2…………$34.06
RESISTANCE # 1…………$33.37
PIVOT ……………………$32.87
SUPPORT # 1 …………$32.18
SUPPORT # 2…………$31.68
Mike Daly / Gold Specialist
Research Division
312.563.8029
877.294.4669
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