Gold price tumbles on reports of de-escalating Middle East tensions
Gold plunged 3% after Axios reported that Israel and Lebanon have accepted the terms of a ceasefire agreement.
Today’s Globex session traded a very choppy and volatile $26.60 range as traders attempted to decipher all the economic data. Due to tomorrows Banking Holiday (Veterans Day) the United States Department of Labor released better than expected Initial Jobless Claims data showing first time claims to be – 435,000 better than the projected 450,000. Also the U.S Balance of Trade was a deficit of $44 Billion…This was expected to be a deficit of $45 Billion……
The Peoples Bank of China revealed today that as of November 16th it will raise the commercial bank reserve requirement by .50 basis points… This helped fuel the sell-off today as anytime you mention Central Banks raising rates Gold and Silver will usually tumble…However, the Chinese Trade Surplus reading is the second highest ever on a monthly basis….This is an indication that the Peoples Bank of China may be looking to increase their Gold reserves…
The CME Group (The World’s Largest Futures Exchange) sent letters to member firms and others on Tuesday stating they would be raising the margin requirements for trading Silver…..The increase was significant enough to force traders to sell / profit take to meet margin requirements…..
NO REPORTS….Veterans Day…..11/11
MY SWING NUMBERS / THURSDAY 11/11 DECEMBER GOLD
RESISTANCE # 2…………….$1424.00
RESISTANCE # 1…………….$1413.00
PIVOT…………………………..$1398.00
SUPPORT # 1…………………$1385.00
SUPPORT # 2…………………$1374.00
*Happy 235th Birthday U.S.M.C
Mike Daly / Gold Specialist
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