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.
Today’ gold trade was another roller-coaster ride as investors and traders alike await the possibility of another Interest rate hike from The Peoples Bank of China. Many financial experts predict the hike could happen over the weekend.
However, the Gold and silver rallied late session as fears from Ireland’s banking crisis may be resolved quickly. This news rallied the Euro versus the U.S Dollar and helped fuel the strong comeback for the precious metals. Overnight China said it will raise its rates .50 basis points on its reserve requirements…..inflation is running at a 25 month high…
This may be an indication they will inject a rate hike in their homeland.
Gold settled at $1352.30 for the week….
Silver settled at $27.17.9 for the week….
Noteworthy Weekly News…. Tuesday’s Gold market witnessed another avalanche sell-off as European Union debt crisis fears continue to weaken the Euro versus the U.S Dollar. The stronger Dollar coupled with possibility of more rate tightening from China are putting extreme pressure on the World’s equity markets as well as the precious metals. The Chinese Central Banks are poised to raise rates again to help slow their countries historic rise in commodity prices…. (Inflationary)….
This is certainly a retaliation to the FOMC’s “quantitative easing” decision. In these economic times the Central Banks of the world are doing whatever is appropriate for their countries’ economies… Wednesday’s avalanche sell-off was directly linked to indications that the Chinese Central Banks were considering raising their interest rates again…
Today the Chairman of the United States – China Economic and Security Review Commission Dan Slane stated the report “reflects the commission’s conclusions that China has failed in some notable area’s to fulfill promises it made nine years ago when it joined the World Trade Organization…. This was followed by a recommendation that the U.S Treasury Department label China as a “currency manipulator’ for unfair trade advantages…
Senator Richard Shelby (Alabama) told sources that Ben Bernanke is defending the quantitative easing 2 and defended his FED study which indicates the QE 2 will add an additional million jobs….
The Department of Labor released data today showing the new Initial Jobless Claims rose 2,000 to 439,000. I believe investors are still looking to China to see if they intend to raise their Interest rates once again. The China Central Bank unexpectedly raised their benchmark lending rates 0.25 percentage rates on October 19, 2010 for the first time in three years.
According to Chinese officials the rate was raised as an attempt to curb the countries historic high prices for commodities. (Slow their inflation)…Many analysts expect China’s Banks to raise their rates again…..
When Central Banks raise interest historically causes Gold and Silver to tumble….However, if prices to drop I believe there will be plenty of bullion buyers including Central banks looking to increase their reserves…..China and South Korea have both expressed interest in doing so……
MY SWING NUMBERS FOR 11/22 DECEMBER GOLD
RESISTANCE # 2…………..$1374.00
RESISTANCE # 1…………..$1363.00
PIVOT…………………………$1352.00
SUPPORT # 1……………….$1341.00
SUPPORT # 2……………….$1330.00
DECEMBER SILVER
RESISTANCE # 2………… $28.03
RESISTANCE # 1………….$27.60
PIVOT………………………..$26.97
SUPPORT # ‘1……………..$26.55
SUPPORT # 2………………$25.91
Mike Daly / Gold Specialist
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