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.
After three full trading sessions in the books the Gold Market has traded a $30.10 range with a high of $1215.10 on Monday and a low of $1185.00 recorded Wednesday.
So far this week’s market has been extremely technical and has traded within my support and resistance levels. The Gold market seems to looking for direction as the ‘buying” momentum has decreased as it appears many investors took Gold profits and reinvested it in the global equity markets.
The demand for physical Gold has remained high globally and I expect that trend to continue. With summer markets upon us and the lack of wedding and festival from China and India (until September)there has been less physical buying due primarily to the recent record price levels of gold…
IF Gold continues to drop look for the BBA (Bombay Bullion Association) to possibly become a player as they have reported gold imports into India are down 75% from a year ago…. Since India is the largest consumer of gold in the world and with the upcoming wedding season approaching (September –December) these lower prices may
be attractive to the Jewelers….
There has been some note worthy news this week …
Kansas city Federal Reserve President Thomas Hoeing reinforced his opinion concerning interest rates and stated “The Fed should raise its target rate to 1%, even as some economic reports indicate the recovery is slowing”…. “ I am not saying raise rates to very high levels I am saying get it off zero”…..
He also expected the economy to grow about 3% this year……………
This news has certainly not been gold friendly as a raise in Interest rates should (in normal times)send the price of gold lower….
But as we have seen this year gold has coupled and de-coupled with all of its normal fundamentals (U.S Dollar, Euro, Crude oil)….
The Gold is a “safe haven asset’ and is sought in times of crisis, inflation, and warring environments….
Speaking of crisis The European Central Bank voted to leave Interest rates at a record low 1%…as rising market borrowing costs and the sovereign debt crisis continue to threaten the Euro region. Euro central Bank President Jean-Claude Trichet has stated “all Euro countries must comply with fiscal plans and more ambitious targets may become necessary” and also relayed “All countries must show credible budget adjustment and Governments must take additional measures if needed”…..
Initial Jobless Claims for unemployment benefits fell 21,000 to 454,000 for the week ending July 3rd ….
This means 21,000 more Americans are employed….
Certainly any increase is great news !!!!
Regardless of the past weeks negative news…Gold is still waffling around $1200.00 per ounce……
Let’s Talk Gold…
Mike Daly / Gold Specialist
PFG BEST
877-294-4669
312-563-8029
*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX”
