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.
Another strong rebound from the precious metals today as traders view the Quantitative easing through June 2011 as sign the U.S Dollar will remain under siege and it is probably also an indication that the benchmark interest rates will remain low.
This does not mean there will not be positive U.S Dollar news in the future it simply means that the news was viewed as bullish precious metals for the short term. There was another mammoth trading range in the Globex December Gold contract covering $38.10 from High – Low.
The volume has also been enormous of late with over 211,000 contracts trading today. The gold market also used the poor economic data today to help fuel today’s incredible rally. Today’s initial Jobless Claims rose 20,000 to 457,000 from last week and the U.S Productivity rose by 1.9% in the third quarter. Both economic numbers were higher than projections.
After yesterday’s huge decline once again there was another bargain hunters buying opportunity for the Asian sector as the retail jewelers of India entered the market to stock up for the upcoming “DIWALI” festival held on November 5th ……
REPORTS: 11/5
UNEMPLOYMENT……..7:30 am (cst)
MY SWING NUMBERS FOR 11/5…..DECEMBER GOLD
RESISTANCE # 2…………….$1407.00
RESISTANCE # 1…………….$1395.00
PIVOT…………………………..$1371.00
SUPPORT # 1…………………$1357.00
SUPPORT # 2…………………$1333.00
Mike Daly / Gold Specialist
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