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 provided another huge range ($39.50 on the Globex exchange) as the technically overbought Gold market experienced yet another avalanche sell-off. as nervous traders remained uncomfortable holding positions at these unchartered price levels and have been eager to take profits when the rally momentum shifts.
Once again it will be interesting to see if the Asian sector (primarily India) as they have been very active buyers after significant price dips. With the largest Hindu festivals still to come i expect the jewelers of India to remain active buyers through November 5th…..(DIWALI FESTIVAL)
Today’s Initial Jobless Claims totaled 452,000 this was better than the 455,000 claims that was expected…….
Gold bugs should be aware of a very important piece of news coming out of the Far East…It has been reported that the Governor of South Korea’s Central Bank Mr. Kim Choong-soo told a preliminary committee (Monday 10/18) that South Korea “needs to give careful consideration to the matter of increasing gold volumes in the foreign reserves”….This means they are contemplating a large accumulation of Gold… KEEP AN EYE ON THIS !
Price corrections are very healthy for markets…. It maintains the health of the market…offers a two sided trade…. Also it retains the volume, volatility, and integrity of the market….
MY SWING NUMBERS FOR 10/22…DECEMBER GOLD….
RESISTANCE # 2…………….$1370.00
RESISTANCE # 1…………….$1344.00
PIVOT ………………………….$1331,00
SUPPORT # 1…………………$1312.00
SUPPORT # 2…………………$1300.00
Mike Daly / Gold Specialist
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LOOK FOR MY WEEKLY REPORT…..TOMORROW …..
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