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 Gold market encompassed a range of $34.30 trading between $1211.70 and $1246.00. The current economic climate has sent savvier investors into safer investments primarily Gold and Silver.
Historically Gold and Silver retain their value better than most other commodities. The Gold has also been supported by a underlying insatiable demand for physical Gold especially but not exclusively from the jewelers of India. The wedding and festival season begin September 1st and extend through December.
During this season the demand for Gold is truly insatiable from the citizens of India. Gold is used for the bridal attire, ornamentation, and is also the gift of choice…
The World Gold Council has reported that India will consume more gold by the end of August than it did all of last year….very impressive especially when you realize that India is the largest consumer in the world….
Economic data was a bit better the last few days…. Initial Jobless claims dropped by 31,000 to 473,000 this was better than expected as economists projected 10,000 & 490,000….
GDP was revised to 1.6% this also was better than the 1.4% projected… Silver traded as high as $19.37 today as the high price of Gold has forced many to buy Silver as an alternative “safe haven”… Silver enjoys a duo metal status…it is a precious metal as well as an Industrial metal….there is high demand for Silver from the manufactures of batteries -solar panels….
*NIKKEI NEWS…reported that the Bank of Japan is considering holding a Board meeting next week….bank of Japan has scheduled Meetings for September 6th & 7th …..
Fed Chairman Ben Bernanke spoke today and had some noteworthy comments…( Below are a thumb nails sketch)…. *Bernanke stated …the Fed would consider a large scale purchase of Securities, likely government debt….
The Federal Open Market Committee (FOMC) will strongly resist deviations from price stability in the downward direction… “The FED would be more vigilant and proactive if inflation falls by a significant amount” Bernanke also stated that despite a weak second quarter the preconditions for a pickup growth in 2011 appear to remain in place….
There is true lack of confidence from investors globally… The world’s equity markets are under siege which is why Investors are turning to the Gold and Silver markets….. Investors are disgruntled and prefer tangible assets over fiat currencies….
GOLD SETTLED AT $1237.90 for the WEEK…………….
The following are my “SWING” points for Monday 8/30…
(DECEMBER GOLD)
RESISTANCE # 2………………$1249.00
RESISTANCE # 1…………….. $1242.00
PIVOT… ………………………… $1238.00
SUPPORT # 1…………………..$1232.00
SUPPORT # 2…………………..$1227.00
Mike Daly / Gold Specialist
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