THIS WEEK GOLD COVERED A $92.10 RANGE AND SETTLES AT $1636.10 FOR THE WEEK
This week the December Gold Futures contract traded a technical $92.10 range as traders and investors tried to decipher the constant barrage of news from the European union along with the daily economic data. Without a doubt this week’s markets were fueled by the fragility of the Euro region and it’s seemingly ever changing news releases. It has become very apparent that the 17 Euro nations cannot unanimously agree on anything. With this weekend’s Brussels summit quickly approaching all the eyes of the investment community will watching and hoping for a favorable end result. The summit will take place between the close of Wall St. and the opening of the Asian Markets. This certainly explains why “short” positions probably were liquidated and the Gold market finished the session up $23.20.
Noteworthy weekly news:
THURSDAY:
Today’s December Gold Futures market covered another vast $41.80 range and finished $34.10 lower for the day session. The continued fragility and indecision in the European Union remains the fuel in pushing the precious metals lower. The constant contradictions that are flowing from the Euro region has certainly added to the lack of Investor and trader confidence in regard to the regions Financial Ministers and politicians.
I have read reports that the weekend’s summit possibly would be postponed to actually holding a second summit next Wednesday. Apparently the news for now is there will a weekend summit and a second summit on Wednesday. I guess the feeling is two meetings are better than one. STAY TUNED !
HIGH-LITES FOR THIS WEEKENDS (+ WEDNESDAY) SUMMIT (S)
France/Germany say that euro zone leaders will discuss an agreement in depth on Sunday before adopting it on Wednesday at the latest.
Sarkozy and Merkel are scheduled meet on Saturday in Brussels to discuss the euro zone-Franco-German statement….(key). France and Germany want an immediate start of negotiations with private sector to find accord on Greek debt.
Moammar Ghadaffi former Libyan leader was killed today. This may have fueled lower Crude Oil prices. Since the 8 month long civil war in Libya Oil production has ceased. Libya produces about 3% of the worlds Crude Oil. Now that Ghadaffi is dead speculators may be anticipating a resumption in Crude Oil production…. Normally Gold and Crude Oil follow one another.
U.S DEPARTMENT OF LABOR REPORTED:
The weekly report on Initial Jobless Claims is 403k
MONDAY:
Today’s December Gold Futures contract produced a range of $29.80 with a High of $1696.80 and a low of $1667.00 during the day session. Traders are continuing to monitor the fragility in the European Union and are trading very cautiously and choosing to take profits when the opportunity presents itself. We are hearing that the Prime Ministers of both Germany and France intend to raise the size of the Euro Zone rescue fund up to 2 trillion Euro’s.
Traders and investors are buying price dips in he precious metals as many investors are looking at the purchase of Gold and Silver Bullion as a long term investment. The Asian sector is still buying physical precious metals and there are Reports that China has upped their production of Gold and are producing nearly 32 tons per month.
Lower energy prices also helped to slow gold’s rally momentum today as well….
MY SWING NUMBERS FOR MONDAY 10/24
December Gold………
Resistance # 2………………….$1670.00
Resistance # 1………………….$1653.00
Pivot ………………………………$1633.00
Support # 1………………………$1616.00
Support # 2………………………$1596.00
Mike Daly / Gold Specialist
Research Division
312.563.8029
877.294.4669
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