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 $15.20 range. The rally today was fueled by “safe haven” buying as the news from the European Union renewed eculators worries about the fragility of the region. There are legitimate concerns regarding a possible default of sovereign debt in Europe and the economic growth of European Banks. Also fanning the flames was news that Germany’s manufacturing orders fell 2.25 IN July. The Euro region continues to struggle and is forcing savvier investors to choose alternative “safer haven” investments…
The economic climate here in the United States has been slow in rebounding and has caused investors globally to lose confidence in the fiat currencies and therefore choosing precious metals as a tangible asset.
The physical demand from India and the Asian sector has been the underlying fundamental for the past month.
As we know the Indian Wedding and Festival season is underway and the insatiable demand should continue and peak with Diwali “festival of lights’ in November 5th.
Jewelers will need to stock and restock to meet the demand.
Australia’s Central Bank kept their key interest rate at 4.5%.
Japan’s Central Bank kept their interest rate at 0.10%.
MY SWING NUMBERS 9/8 … DECEMBER GOLD….
RESISTANCE # 2…………………$1271.00
RESISTANCE # 1…………………$1266.00
PIVOT……………………………….$1256.00
SUPPORT # 1……………………..$1251.00
SUPPORT # 2……………………..$1241.00
PLEASE EMAIL YOUR QUESTIONS AND COMMENTS….
Mike Daly / Gold Specialist
PFG BEST
877-294-4669
312-563-8029
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