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.
The European Union’s debt crisis continues to fuel investor demand for gold on a global basis. Investors world-wide appear to using Euro’s to purchase gold as a hedge or “safer haven” to guard against further Euro Dollar weakness. There is sentiment throughout the investment community that the worst may not be over in the Euro region and savvier investors are taking stock in gold.
The European’s are not alone it has been reported through the WGC (World Gold Council) that “India’s total gold demand surged to 193.5 tons In the first quarter. (ending march 31st)…………. 147.5 tons was sold as jewelry ! Also china’s demand was up 11%…… There is always insatiable demand out of the Asian sector …. As you can see there is certainly a huge demand GLOBALLY…….
The U.S mint has reported “ sales of coins has risen to its highest level since December 2008”…….
Bernanke repeated overnight “that central banks must be insulated from politics if they are to be effective”… (while in Tokyo)… He also added “U.S inflation expectations are very stable………….
The world is also eyeing some growing tension between North Korea and South Korea….as there appears to be mounting evidence that North Korea did in fact torpedo a South Korean Navy ship earlier this year….Global tension forces investors to safer havens…..(Gold , Silver, Diamonds….)
The April report for New Home Sales was much better than expected up 14.8%…..504,000….
REPORTS 5/27……
EXPORT SALES…………………7:30 am (CST)
GDP…………………………………7:30 am (CST)
JOBLESS CLAIMS……………..7:30 am (CST)
SWING NUMBERS 5/27…..AUGUST GOLD…………
RESISTANCE # 2………….$1228.00
RESISTANCE # 1………….$1221.00
PIVOT…………………………$1212.00
SUPPORT # 1……………..$1206.00
SUPPORT # 2……………..$1196.00
Mike Daly / Gold Specialist
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