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.
This week the economic data halted the latest “bull run” as traders try to decipher the long term affect. The Gold market covered a $26.80 range for the week which included a high of $1264.70 and a low of $1237.90 for the December Globex market.
Both Gold and Silver traded in technical ranges and despite better than expected U.S Economic Data this week the Precious Metals primarily Gold and Silver retained value better than I would have expected. Thursday the initial jobless Claims number was better by 27,000 and better than expected. This coupled with the better than expected trade Balance deficit had traders looking to sell Gold as the equity markets rallied. The July Wholesale Inventories increased 1.3% from the prior month, more than three times the expected gain. All good equities data and bearish for Gold and Silver.
We also learned that China had decided to release several of their economic statistics data on Saturday including PPI, CPI, Retail Sales, and Industrial Production…. This generated rumors about a possible rate HIKE from China’s Central Bank. …Central Bank rate hikes are Generally “bearish ” Gold and Silver…..This rumor started the sell-off in the Gold today in my opinion. I also believe savvier investors realized that China is not in the Gold selling business but rather the Gold buying business and re-entered the market at a cheaper level. After all China reported its third straight trade surplus in excess at $20 Billion….
We also need to remember that the Jewelers of India are restocking their shelves and remain extremely aggressive buyers of Gold Bullion……..(especially buying PRICE DIPS)…….
Early in the Thursday session we learned a suicide bomber detonated a car packed with explosives in the town of Vladikavkaz located in southeastern Russia killing 16 and injuring over 100 more. TERRORIST ATTACKS are viewed as a act of war and a warring environment is normally bullish Gold…
The volume in Gold and Silver has remained HIGH….. Despite the strong Economic news from the United States It still remains clear that there is still a lot of concern with the fragility of the Euro region…. Today the leading German Newspaper “Handelsblatt reiterated its report that Deutsche Bank plans to raise 9 Billion Euros through a sale of new shares…..
All in all Gold is still strong…Settled at $1246.50 for the week… Silver traded over $20 per ounce this week….. This despite all the Equity friendly news…..
SWING NUMBERS FOR 9/13 DECEMBER GOLD…..
RESISTANCE # 2……………$1261.00
RESISTANCE # 1……………$1254.00
PIVOT…………………………..$1246.00
SUPPORT # 1…………………$1239.00
SUPPORT # 2………………..$1231.00
Mike Daly / Gold Specialist
PFG BEST
877-294-4669
312-563-8029
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.
