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 $21.30 choppy range as heightened tensions in Libya and the Middle East continue to send investors into the precious metals as a “safe haven” alternative investment. The demonstrators throughout the African and Middle East are threatening the supply of Crude oil and ultimately are causing oil prices to threaten the $100.00 per barrel level. Higher Crude prices are inflationary and would be “bullish” for both Gold and Silver. Gold should continue to be supported by these geo-political tensions. Libya is an OPEC member and produces 1.6 million barrels of oil a day.
Silver is continuing to impress as well as the volume has increased dramatically during this geo-political rally. The cheaper price in comparison to Gold has attracted both the large and small investors who are looking for more “bang for their buck”.
Economic data 2/24
INITIAL JOBLESS CLAIMS……..7:30 AM (CST)
NEW HOME SALES ……………..9:00 AM (CST)
MY SWING NUMBERS 2/24
APRIL GOLD
RESISTANCE # 2……………..$1430.00
RESISTANCE # 1……………..$1422.00
PIVOT……………………………$1409.00
SUPPORT # 1…………………$1401.00
SUPPORT # 2…………………$1388.00
VOLUME………………………..125,000
MARCH SILVER
RESISITANCE # 2……………….$34.33
RESISTANCE # 1………………..$33.82
PIVOT ………………………………$33.25
SUPPORT # 1……………………$32.74
SUPPORT # 2……………………$32.16
Mike Daly / Gold Specialist
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