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.
This week the December (Globex) contract recorded yet another all-time high trading $1398.70) as the global investor continues to choose Gold as its currency of choice. On Wednesday November 3rd the December contract traded as low as $1325.50 and just two sessions later the Gold market traded as high as $1398.70…that’s a $73.20 rally in two trading sessions.
The ‘Quantitative Easing” plan revealed by the FOMC Wednesday 11/3 has certainly given investors the confidence to buy Gold and Silver as a “safer haven” to protect their wealth.
Noteworthy News This Week……. 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…. On Thursday (After the Fomc news was deciphered) another strong rebound from the precious metals.
Thursday as traders view the Quantitative easing through June 2011 as sign the U.S Dollar will remain under siege and it is probably also an indication that the benchmark interest rates will remain low. This does not mean there will not be positive U.S Dollar news in the future it simply means that the news was viewed as bullish precious metals for the short term.
There was another mammoth trading range in the Globex December Gold contract covering $38.10 from High – Low. The volume has also been enormous of late with over 211,000 contracts trading today. The gold market also used the poor economic data today to help fuel today’s incredible rally.
Today’s initial Jobless Claims rose 20,000 to 457,000 from last week and the U.S Productivity rose by 1.9% in the third quarter. Both economic numbers were higher than projections. Despite some very strong UNEMPLOYMENT data on Friday (151,000 more jobs than forecasted) the global investor was still using the FOMC “quantitative easing policy” as their guide to buy Gold….
The Diwali festival took place on November 5th….The most auspicious day for the giving of Gold and Silver has been the over-whelming fundamental buying support for the past two months ….
The retail jewelers of India have seemingly stepped up to buy virtually every significant price dip to prevent the technically overbought Gold market from trading below the $1300.00…. The “bargain hunting buying” kept the gold buoyant and helped to entice global investors into the market as the world watched the resiliency of Gold…..
The Wedding season in India continues through December…..
MY SWING NUMBERS 11/8….DECEMBER GOLD
RESISTANCE # 2………….$1416.00
RESISTANCE # 1………….$1406.00
PIVOT ……………………..$1389.00
SUPPORT # 1………………$1380.00
SUPPORT # 2………………$1362.00
Mike Daly / Gold Specialist
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