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 trade covered a very choppy $11.60 range as traders awaited news from the FOMC.
The FOMC left interest rates unchanged however, they left the possibility of Quantitative easing on the table. Quantitative easing describes a form of monetary policy used by central banks to increase the supply of money in an economy when the bank interest rate, discount rate and / or interbank interest rate are either at, or close to zero (Wikipedia)…
This news may have sent mixed signals to traders and causes concern for pending inflation….Gold rallied in the night session after learning the FOMC would print money as needed…. The huge physical Gold demand continues to fuel and support the gold as the demand from the jewelers of India continues to grow in anticipation of the September- December Wedding and Festival season. Once again China’s trade surplus was better than anticipated as the reading for July recorded a surplus of $28.7 Billion…..
REPORTS;
U.S TRADE BALANCE…..7:30 AM (cst)
MY SWING NUMBERS….8/11….DECEMBER GOLD
RESISTANCE # 2…………..$1210.00
RESISTANCE # 1…………..$1203.00
PIVOT…………………………$1198.00
SUPPORT # 1……………….$1192.00
SUPPORT # 2……………….$1188.00
LET’S TALK GOLD….
Mike Daly / Gold Specialist
PFG BEST
[email protected]
877-294-4669
312-563-8029
