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.
The Gold trade was very choppy in anticipation to the two day FOMC Meeting covering Tuesday and Wednesday. The consensus agrees the FOMC will leave interest rates unchanged for an extended period. However, traders to tend sit the side-lines whenever there is a meeting of the FOMC.
The European Union debt crisis continues to pressure the Euro as the basis spread between Greek and German bond yields expanded after Germany belayed its commitment to come to Greece’s financial aid. German Chancellor Angela Markel had stated ” Greece must commit to further savings measures and show it can return to a sustainable economic path before Germany can approve emergency aid”. The aid package for Greece must be approved by the national parliaments of the European states.
Despite a strong U.S Dollar and weaker energy prices the Gold market continues to be fundamentally strong due to the safe haven buying demand from the Europeans and the steady insatiable demand from the Asian sector. As the wedding and festival seasons continue the demand should also remain high. Venezuela: Hugo Chavez is threatening to nationalize Gold mining in Venezuela. Mr. Chavez has vowed to assert greater “STATE CONTROL” over Venezuela’s mineral resources to supplement the nation’s income along with its vast oil supply. It appears foreign companies may lose their mining rights in Venezuela…….
REPORTS: 4/27
** FOMC MEETING (day one)**
CONSUMER CONFIDENCE…………….9:00 AM (cst)….
SWING NUMBERS 4/27….TUESDAY …..JUNE GOLD
RESISTANCE # 2…………………..$1165.00
RESISTANCE # 1…………………..$1159.00
PIVOT………………………………….$1155.00
SUPPORT # 1…………………… $1149.00
SUPPORT # 2…………………… $1145.00
Mike Daly / Gold Specialist
PFG BEST
877-294-4669 312-563-8029 312-775-3014
*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*
