Gold Covers A $29.10.10 Range This Week
This week Gold traded another new all-time high ($1448.60) as once again high Crude Oil prices helped to fuel this week’s rally. As the north African and middle-east geo-political chaos continue to offer global uncertainty it has become apparent that investors are still choosing the precious metals as their “safe haven’ investment choice.
The tension in the Middle-eastern region appears to be spreading as news reports indicate that Syrian Security Forces have opened fire on anti-government protestors near the city of Daraa killing at least 20 people according to AL Jazeera. There are also reports that thousands of protesters in Yemen as well as Bahrain. The United Nations continue to enforce the no-fly zone and have inflicted heavy damage to Ghadaffi supported troops and weaponry, all of this geo-political tension has lent support to the precious metals…..
Thursday the April Globex contract notched another all-time high however, since that trade the April contract has nose dived $22.40 as investors and traders alike have taken profits prior to the weekend. This has been the norm as traders are cautious trading these levels as many long time Gold bugs are anticipating a rate hike from the European Central Bank sooner than later according to the experts despite continued credit issues from Portugal, Ireland and Greece. Normally when Central banks raise rates it causes the precious metals to retreat, at least initially….
Weekly News
Thursday: The U.S. department of Labor stated that first-time claims for unemployment dropped 5,000 to 382,000
Tuesday: The European Central Bank stated “strong vigilance” is necessary to keep a lid on inflation, this is a signal that maybe rate hikes are on the way, maybe next month.
The North African and Middle-east tensions are bullish for Gold and Silver since Higher Crude Oil prices are considered inflationary and during times of inflation the precious metals historically retain their value better than most commodities, it is considered a “safe haven” investment.
MY SWING NUMBERS FOR 3/28
APRIL GOLD
RESISTANCE # 2…………………$1445.00
RESISTANCE # 1…………………$1436.00
PIVOT……………………………….$1429.00
SUPPORT # 1…………………….$1420.00
SUPPORT # 2…………………….$1410.00
MAY SILVER
RESISTANCE # 2…………………$38.14
RESISTANCE # 1…………………$37.60
PIVOT……………………………….$37.24
SUPPORT # 1…………………… $36.69
SUPPORT # 2…………………….$36.34
Mike Daly / Gold Specialist
PFG BEST
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