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 session covered a sluggish $14.30 range on very light volume (39,000)…
Despite a Christmas Day interest rate hike (.25 basis points) on their key one-year lending and deposit rates from the “Peoples Bank of China” the Gold market held value and actually settled $2.40 higher. Despite the second hike in two months “bargain hunters” helped support the Gold market as investors showed strong buying interest after the Christmas Day rate hike from the Asian sector as the COMEX AND GLOBEX EXCHANGES were closed for the Christmas Holiday….
Financial analysts are predicting two to three more rate hikes in the first half of 2011….. Globex Gold over night traded as low as $1372.70…. I think many investors were expecting the hike as there was profit taking all last week….That certainly helped prevent an avalanche type sell-off…….
MY SWING NUMBERS…12/28…..
FEBRUARY GOLD
RESISTANCE # 2…………….$1395.00
RESISTANCE # 1…………….$1389.00
PIVOT…………………………..$1381.00
SUPPORT # 1…………………$1375.00
SUPPORT # 2…………………$1367.00
MARCH SILVER
RESISTANCE # 2…………… $29.70
RESISTANCE # 1…………….$29.47
PIVOT ………………………….$29.14
SUPPORT # 1…………………$28.92
SUPPORT # 2…………………$28.59
Mike Daly / Gold Specialist
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