This week’s Gold market covered a $29.60 range while notching another All-time high as the August futures contract traded as high as $1610.70 on July 19th and as low as $1581.10 just one session later. These markets have been economic data driven and since the data that is being released apparently changes seemingly minute to minute it has been very difficult this week to decipher. This week we have learned that the situation in Greece is a long way from being over despite their receiving bailout monies from the IMF and European Union jointly.
The Euro Union’s debt crisis appears to spreading and therefore adding to the fragility of the region. Here in the United States it has become a reality that U.S Legislators are going to wait until the August 2nd deadline and continue to hold world markets hostage. Also today ” a bomb explode rocking downtown Oslo, Norway killing at least two and injuring several others and causing wide spread damage in Norway’s government center’ according to news reports. Anytime there is a n act of war or terrorist act it normally is very “bullish Gold”..as it sends investors into “safe haven ” alternative investments.
Standard and Poor’s reported that the ODDS of the United States having their Credit Rating LOWERED to AA were 50/50 ! After a meeting involving FOMC Chairman Ben Bernanke, Secretary of the Treasury Timothy Geithner, and New York FED Boss William Dudley today they expressed confidence that congress will raise the debt ceiling……Stay tuned….
Noteworthy Events This Week :
Thursday: Initial Jobless Claims were 418,00 more than the expected 410,000.
Wednesday: Reports from Greece
By Angela Cullen
July 19 (Bloomberg) — German Free Democratic Party lawmaker Frank Schaeffler said Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble should make the case for a temporary exit of Greece from the euro zone, Handelsblatt reported, citing an interview. Schaeffler, criticizing the German government’s handling of the Greek crisis, said Greece should be given the option of temporarily leaving monetary union as this is the only “sensible way” to make the southern European country’s economy competitive again, according to the German newspaper.
The European Union is much more fragile than anyone thought!
Tuesday : President Obama indicated that the United States Lawmakers may be getting closer to raising the debt ceiling. This “Bearish” Gold news forced traders to liquidate and take profits resulting in a new daily low of $1585.20 as of this posting. The august Gold literally dropped $15 in a matter of minutes. There has been so much bad news data for the past few weeks proving that any ray of sunshine can force the Gold to retreat.
We have rallied over $132.40 (top – bottom) in 18 days
Monday : Silver, once left for dead a few months ago is regaining momentum and settled over $40,00 per ounce for the first time since May 3rd. As the September futures contract settled at $40.34.
Silver traded as high as $40.88 this week!
MY SWING NUMBERS 7/25
AUGUST GOLD
RESISTANCE # 2…………………$1621.00
RESISTANCE # 1…………………$1611.00
PIVOT……………………………….$1597.00
SUPPORT # 1…………………….$1587.00
SUPPORT # 2…………………….$1573.00
SEPTEMBER SILVER
RESISTANCE # 2…………………$41.19
RESISTANCE # 1…………………$40.66
PIVOT……………………………….$39.76
SUPPORT # 1…………………….$39.22
SUPPORT # 2…………………….$38.33
Mike Daly / Gold Specialist
PFG BEST
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There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
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