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 day session covered a very wild and choppy $37.70 trading range as traders nervously awaited news from the FOMC. These unchartered price levels have caused traders to trade very defensively and to take profits when available. Ss we have witnessed the recent price dips have been of avalanche proportion however, in my opinion they have also been way OVER-DONE due to the trading charts showing we are at technically overbought levels…
The over whelming support continues to be the strong demand for physical bullion. it will once again be interesting to see if the Asian sector steps up and buys physical gold at these lower levels.
FOMC MEETING….
On November 3, 2010, the Federal Open Market Committee (FOMC) decided to expand the Federal Reserve’s holdings of securities in the System Open Market Account (SOMA) to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate……
The Fed plans to expand asset purchases by $600 billion by the end of June 2011….Which probably means the present benchmark interest rates will remain unchanged….
REPORTS: 11/4
EXPORT SALES………………….7:30 am (cst)
INITIAL JOBLESS CLAIMS……..7:30 am (cst)
PRODUCTIVITY…………………..7:30 am (cst)
MY SWING NUMBERS 11/04
RESISTANCE # 2………..$1381.00
RESISTANCE # 1………..$1359.00
PIVOT………………………$1343.00
SUPPORT # 1……………$1321.00
SUPPORT # 2……………$1303.00
Mike Daly / Gold Specialist
PFG BEST
877-294-4669
312-563-8029
There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
