Newmont sells Éléonore mine in Quebec for $795m
The miner said the deal and other 2024 sales will raise $3.6 billion.
This week’s gold trade traded a very choppy and volatile $51.90 range. We traded as low as $1309.10 on January 31st and as high as $1361.00 today February 4th. It appears that traders and investors alike are choosing to choose the precious metals as a “safe haven“ investment due to the chaos in Egypt. The political tensions have resulted in rioting and violence as protesters have demanded a change in the Egyptian government. It has been reported that Egypt’s military has been sent to protect the SuMed pipeline against possible attack due to the civil unrest. The SuMed stretches over 200 miles and transports crude along the Suez Canal. Obviously if the pipeline is disrupted it could send the price of Crude oil sky rocketing and higher Crude prices will be “Bullish” for precious metals. The Egyptian scenario is far from a resolution and will continue to shape the markets. The Labor Department reported that unemployment rate fell to 9% in January. This was pleasantly unexpected.
WEEKLY EVENTS…
European central bank Boss Jean-Claude Trichet stated that “very close monitoring” of inflation warranted in the Euro region. This statement may have chased savvier European investors into the precious metals as a “safe haven“ investment.
The weekly Initial Jobless Claims was 415,000.
This was expected to be 420,000.
CONCLUSION Early in the week it certainly looked as though the Gold market Would sell-off below the psychological $1300.00 an ounce level due to many central banks decisions to raise key interest rates to combat their countries historically high inflation…These countries included China, India, North Korea, and Thailand…. However, due to the crisis in Egypt global investors have once again turned to Gold and Silver as their alternative investment of choice. The resiliency of the precious metals continues to shine… As traders of the precious metals you will need to monitor the situation in Egypt and see if indeed Egyptian President Hosni Mubarak does step down. The bigger question: Who replaces him?
MY SWING NUMBERS FOR 2/7
APRIL GOLD
RESISTANCE # 2………………….$1367.00
RESISTANCE # 1………………….$1359.00
PIVOT……………………………… $1352.00
SUPPORT # 1……………………..$1343.00
SUPPORT # 2……………………..$1337.00
VOLUME…………………………….127,000
MARCH SILVER
RESISTANCE # 2……………………$29.58
RESISTANCE # 1……………………$29.32
PIVOT………………………………….$29.02
SUPPORT # 1……………………….$28.76
SUPPORT # 2……………………….$28.46
Mike Daly / Gold Specialist
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