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.
This week the Gold market covered a range of $42.10 while making new all-time highs ($1284.40). The lack of confidence in Global Regulators as well as a lack of confidence in the fiat currencies continues to lead investors into “safer haven” tangible assets.
This week: The Gold continued to rally off of weaker Industrial Production data out of the European Union. Production rose 7.1% year over year however, this was less than the 8% projection. This along with the United Kingdom higher than expected Consumer Price Index sparked inflationary worries.
Savvier investors realize that Gold and Silver are a safer haven in times of economic crisis. They have a history of retaining value better than most commodities. The continued uncertainty from the European Union has sent investors into “safer haven” investments. The German Economy Minister Rainer Bruederle stated that the European Central Banks is too low for Germany and too high for several Euro region states.
Bruederle also stated that if there is no improvement in Greece the country will go bankrupt. He also was quoted as saying “It was the free decision of Greece to be part of the Euro and if you join the club you have obey the rules, otherwise you stay outside, go a different way”….
Mr. Bruederle advised Greece to get its financial house in order to fulfill its obligations to the European Union’s Growth and Stability Pact………
German Chancellor Angela Merkel added that Germany will not agree to extend the Euro financial rescue packages….
I believe that investors are very nervous about the continued fragility from the Euro region and are using euro’s to buy Gold… The physical demand remains high from the jewelers of India. This should continue through November 5th…DIWALI FESTIVAL…
Despite the higher prices the physical demand continues. Citizen of India and China are making more money than previous generations and they are purchasing great amounts of gold, silver, and diamonds (necklaces, bracelets, and rings) as a retail safe haven.
WEEKLY HIGH….$1284.40
LOW….$1242.30
MY SWING NUMBERS FOR 9/20…December
RESISTANCE # 2……..$1289.00
RESISTANCE # 1……. $1283.00
PIVOT……………………$1278.00
SUPPORT # 1………….$1272.00
SUPPORT # 2………….$1267.00
Mike Daly / Gold Specialist
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