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 Gold market witnessed another avalanche sell-off as European Union debt crisis fears continue to weaken the Euro versus the U.S Dollar. The stronger Dollar coupled with possibility of more rate tightening from China are putting extreme pressure on the World’s equity markets as well as the precious metals. The Chinese Central Banks are poised to raise rates again to help slow their countries historic rise in commodity prices….(Inflationary)….
This is certainly a retaliation to the FOMC’s “quantitative easing” decision. In these economic times the Central Banks of the world are doing whatever is appropriate for their countries’ economies…
I am under the impression that countries such as China, Viet Nam, India, South Korea, and possibly the Euro Region will be looking to increase their gold reserves to strengthen their infrastructures….
The Chinese have stated that they intended to build their reserves on par with that of the U.S….
It would make sense for the Chinese to raise rates which would cause the price of gold and Silver to tumble therefore making Gold and Silver cheaper to buy….However the recent drop in gold also makes it cheaper for the jewelers of India who are still stocking Gold for their Wedding season which extends through December….
It also allows global investors to buy gold cheaper as a “safe haven’ alternative investment….. Lack of confidence in the world’s financial regulators as well as the fiat currencies has been the underlying fundamental that has pushed the Gold market to all-time price levels…….
VERY LITTLE HAS CHANGED…..
REPORTS: 11/17 CPI……………………………………..7:30 AM (CST)
HOUSING STARTS & PERMITS…..7:30 AM (CST)
REAL EARNINGS…………………..7:30 AM (CST)
MY SWING NUMBERS 11/17
RESISTANCE # 2………..$1379.00
RESISTANCE # 1………..$1359.00
PIVOT………………………$1344.00
SUPPORT # 1…………….$1324.00
SUPPORT # 2…………….$1309.00
Mike Daly / Gold Specialist
PFG BEST
[email protected]
877-294-4669
312-563-8029
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