Video: West Red Lake Gold works to restart Madsen mine
The company is optimistic about the potential of its Red Lake assets in the storied gold district of northern Ontario.
Today’s Gold session produced another all-time High ($1276.50) and covered a trading range of $30.50.The initial rally was fueled by lower Gold production news from Russia.
The news indicated a 3% decline for the first 7 months of 2010. Normally Gold bugs are not concerned with supply indicators but with the recent physical buying demand it is a valid concern.
The Gold continued to rally off of weaker Industrial Production data out of the European Union. Production rose 7.1% year over year however, this was less than the 8% projection. This along with the United Kingdom higher than expected Consumer Price Index sparked inflationary worries. Savvier investors realize that Gold and Silver are a safer haven in times of economic crisis. They have a history of retaining value better than most commodities.
As the market rallied it proceeded to take out key resistance levels as well as touching off stop-loss orders on its way to new all-time highs. Also remember the month of September is a historically a very strong month for Gold. This is the month the Wedding and Festival seasons begin in India and China. The demand for physical Gold during September through December is insatiable.
My Swing Numbers For 9/15 (December)
RESISTANCE # 2……………$1295.00
RESISTANCE # 1……………$1284.00
PIVOT………………………….$1265.00
SUPPORT # 1………………..$1254.00
SUPPORT # 2………………..$1235.00
Mike Daly / Gold Specialist
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There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
