Video: West Red Lake Gold works to restart Madsen mine
The company is optimistic about the potential of its Red Lake assets in the storied gold district of northern Ontario.
Wow !!! This week has provided a lot of volatility and an extremely large range so far. On Monday we trading as high as $1263.70 and as of this posting we traded as low as $1196.00. That’s a $67.70 range in four days …truly amazing. The Gold market has been supported by the huge physical demand from investors world-wide. This recent sell-off may be seen as a buying opportunity as many investors were waiting for a dip.
The market had failed on three separate occasions to break through the $1265.00 -$1270.00 level as extremely strong selling resistance and lack of buying momentum forced a halt to this “Bull ” rally. The Gold had appeared to be over-bought technically however, the global physical demand continued to be the underlying fundamental supporting the rally. Technically there appears to be strong support around the $1180.00 level …However there was strong resistance at the $1225.00 level as well !!!
The gold market followed the Stocks ,U.S Dollar, and the Crude oil as worries of deflation were on the minds of investors. Also with the unemployment data looming tomorrow and a three day Holiday weekend upcoming it is my belief that mass profit taking helped to start this avalanche – like sell-off which certainly fed upon itself.
This is certainly a technical correction and may offer investors an opportunity to re-enter the market at a lower price.
The U.S Jobless Claims data was worse than expected. Initial claims for unemployment benefits increased 13,000 to 472,000 for the week ending June 26th … Analysts were expecting claims to drop to the 452,000 level…
There were some noteworthy headlines this week… Charles Evans, President of the federal reserve Bank of Chicago said’ he’s wary of calls for further central-bank purchases of assets aimed at stimulating the economy while dismissing fears that the U.S recovery is faltering”…..
He also stated “I am expecting the growth to continue…the Recovery is definitely on” but ” he was not optimistic about The pace of the unemployment growth in coming months”…
Federal Reserve Bank of Atlanta President Dennis Lockhart stated “the U.S. economic recovery isn’t sustainable enough yet to warrant raising interest rates or shrinking the central banks near-record balance sheet”
It is my opinion that this volatility will continue and that the market will continue monitoring the European region as well as the geo-political tensions globally…The mammoth sell-off was much needed to provide freshness and renewed interest both for the “Bulls’ and the “Bears”…..
The global for physical metals is still insatiable ….. It also appears the many investors are choosing Silver over Gold . This makes sense considering the massive price discrepancy. Gold = $1200.00 per ounce…versus Silver which is $17.75 per ounce. Many see Silver as a better investment simply due to its dual status…(PRECIOUS METAL & INDUSTRIAL METAL)…
Let’s talk Gold !
Mike Daly / Gold Specialist
PFG BEST
[email protected] 877-294-4669 312-563-8029
*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*
