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.
This week’s Gold rally has been fueled primarily to overwhelming global demand as investors continue choose both Gold and Silver as their alternative investment choice.
Savvier investors are aware that the precious metals tend to retain their value better than most other commodities and therefore offer them a “safer haven”. Despite better economic numbers later in the week the price of gold traded yet another all-time Friday as it notched the $1322.00 level.
It is my belief that investors world-wide have lost confidence in Financial Regulators as well as the fiat currencies. This is the basis behind the sky rocketing Gold prices. The demand from the Asian sector continues to remain high and should continue through the “Diwali Festival’ that falls on November the fifth this year.
The insatiable demand from India and China has been the underlying support during this recent rally. NOTEWORTHY NEWS THIS WEEK: The U.S Consumer Confidence data dropped to its lowest level since February (48.5) this was expected to be 52.1….. (Consumers losing confidence)….. 90% is considered to be a healthy economy.
Boston Federal Reserve Bank President Eric Rosengren stated that he firmly supported a renewed “quantitative easing” to stimulate the economy, bring down unemployment and avoid further disinflation and possible deflation”.
He also stated that the FOMC must be open to implementing policies that will promote full employment and reduce deflationary risks”. Philadelphia Federal Reserve Bank President Charles Plosser stated that after the worst financial and economic crisis that most of us have ever experienced there will still be a slow but sustainable economic recovery, both in the Philadelphia Fed District and in the nation as a whole” And continued with “Monetary policy is not a magic elixir that can solve every economic ill”…..
Thursday the U.S Department of Labor announced the Initial Jobless Claims for the week ending September 25th had dropped by 16,000 to 453,000 this was better than the 460,000 that was projected. The final revision for the GDP was 1.7% this was also better than the 1.6% that was predicted. Jean- Claude Trichet Chief of the European Central Bank in a statement released late yesterday basically said that the European Union’s economic environment “remains very demanding”.
The U.S Automobile also showed very promising data. GM reported their earnings up 10.5% compared to last year. Ford reported their earnings up 46% from a year ago….. Chrysler’s earnings were up 61% versus last year…
WEEKLY TRADING RANGE :
HIGH – $1322.00
LOW -$1276.50
RANGE – $45.50
MY SWING NUMBERS FOR MONDAY 10/4
RESISTANCE # 2………..$1330.00
RESISTANCE # 1………..$1323.00
PIVOT ……………………..$1315.00
SUPPORT # 1……………$1309.00
SUPPORT # 2……………$1300.00
LET’S TALK GOLD !
Mike Daly / Gold Specialist
PFG BEST
877- 294-4669
312 -563-8029
