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 December Globex market covered a $39.10 range as global investors waffle over the world economic climate.
During this week it became apparent that the gold market had crept into technical over-sold status around the $1160.00 level.
The price dip renewed interest in the buying of physical bullion from investors globally. There was certainly a huge buying surge between $1160 and $1170 from the Asian sector especially from the Jewelers of India. It appears that the Jewelers of India are actively buying bullion in preparation for their upcoming Wedding and festival seasons beginning in September and lasting through December.
It is thought that 12% of all Gold refined in the history of the world is in the households of India. We do know they are the world’s largest gold consumers and purchase approximately 20% of the world’s Gold annually.
Early in the week it appeared investors were showing confidence in the world’s economy as they were selling gold and moving into the Global equity markets as an alternative investment.
However, after mixed economic data it has become evident that the appeal to own Gold is back! Especially when you are getting this type of input from Members of the Federal Reserve….
*St. Louis Federal Reserve President James Bullard suggested the federal reserve should buy more Treasury Securities if inflation dips lower instead of continuing to It’s pledge to keep interest rates low for an extended period.
Ballard added that the United States is closer than it has ever been to JAPAN-LIKE DELATION…..
*Dallas federal Reserve Bank President Richard Fisher delivered a speech in San Antonio and stated his concern the economy “will be sailing forward at a suboptimal speed”.
FISHER LASHED OUT AT Washington’s Legislators for drafting health -care and other laws which he thought forced business to the side-lines…
The news once again revealed the severity of the housing sector: According to (Market Watch & Realty Trac Inc). The trend for the Nation’s foreclosure crisis is worsening as high unemployment, slow job growth, and an uneven rebound in home prices continue to fall behind on their mortgage payments….
When investors hear news like this it causes a lack of confidence in fiat currencies and savvier investors choose “safer havens’ and tangible assets such as Gold, Silver, and Diamonds.
This recent price dip has made gold more appealing than one month ago and has helped give Gold some traction.
Also this week the Chinese Chief Currency regulator announced that China has surpassed Japan to become the world’s SECOND largest economy behind only the United States…..
China is the world’s number one producer of Gold and number two consumers. Inflation or Deflation? It does not seem to matter…
It is my belief investors understand that the precious metals have a history of retaining their value better than most other commodities in times of crisis….
FRIDAY 7/30 DECEMBER GOLD SETTLED AT…..$1183.90
MY SWING NUMBERS FOR MONDAY 8/2….DECEMBER GOLD…
RESISTANCE # 2………………..$1197.00
RESISTANCE # 1………………..$1190.00 PIVOT……………………………….$1179.00
SUPPORT # 1……………………$1172.00
SUPPORT # 2…………………….$1161.00
Mike Daly / Gold Specialist
PFG BEST
877-294-4669
312-563-8029
312-775-3014
*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, AND FOREX*
