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 was very choppy, volatile, and covered a $22 range as global investors continue to look toward the European Union for direction. European Union finance ministers met in Brussels for a four hour strategy session in hopes of bringing investor confidence back to the Euro. European Union President Herman Van Rompuy was quoted as saying” We will provide new sanctions, more than is now provided”. And added” Everyone is ready to go ahead with a strong stability and growth pact”….
Austrian Finance Minister Josef Proell was quoted to say” Countries that are very lax with budget planning must be rapped in the knuckles”.
Gold has traded a $76 range this week as investors are finding it extremely difficult to decipher the facts from fiction that flow from the EU region on a daily basis. As gold traded through $1175.00 it completed a 60% correction. The Gold market had been technically over-bought and in need of a correction to maintain its appeal. There is still a huge demand for physical Gold world-wide. However, last week’s record setting prices forced many to wait and hope for a substantial price dip…
The extreme drop in Crude oil prices has certainly not helped the Gold “bulls “either. Crude had traded as low as $64.24 (June Contract) the lowest since May, 2009.Gold and Crude Oil (until recently) generally trade in the same direction and have normally been “anti” U.S Dollar. However, since the Euro Regions debt crisis these indicators are not as dependable to traders as they once were. Higher crude oil prices generally send investors into the Gold market as a hedge against oil-led inflation…..
My Swing Numbers for 5/24….June Gold…..
RESISTANCE # 2………………$1198.00
RESISTANCE # 1………………$1186.00
PIVOT……………………………..$1176.00
SUPPORT # 1…………………..$1164.00
SUPPORT # 2…………………..$1154.00
Mike Daly / Gold Specialist
PFG BEST
877-294-4669
312-563-8029
*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*
