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 covered a $23.30 range that traded in a very technical manner. The theme for the week was the continuation of poor economic data that sent savvy investors seeking ‘safe haven” investments primarily Gold & Silver. These precious metals have a history of retaining value better than most commodities. This insatiable demand along with the buying surge from the Asian sector has helped to fuel and maintain the current high prices.
On august 24th the Indian Festival season officially begins with “RAKSHA BADHAN”and the tradition of giving gifts of Gold. The Wedding and Festival season in India is September-December and the amount of Gold consumed during this period is phenomenal … it has been reported that 155.6 tons of Gold has been consumed by India in the first six months of this year. The consumers of India are the world’s largest and it is thought that 20% of all Gold consumed annually is purchased from India’s citizens….. India is also in the midst of its monsoon season which is crucial to the Gold industry. The rain helps to increase the output of farms and increases income in rural areas. The better their income the more they will spend on Gold. The monsoon forecast is expected to be good…..
There is concern globally about the economic climate as the European Central bank has suggested they may have to extend loans to banks longer than investors had previously thought. This certainly is an indication of how fragile that region remains…
More poor economic data from the United States Labor Department as they reported jobless filings increased 12,000 -500,000 for the week ending August 14th.(highest since November 2009). The poor Jobless claims coupled with the Philly Fed Index leading economic indicators showed the U.S is on track to grow at a slower pace than earlier in the year… The economic climate globally has been driving investors into the ‘safer haven” precious metals… it is apparent investors have lost confidence in the fiat currencies…..
There was some news worthy remarks today from members of the FOMC. Kansas City Fed President Thomas Hoening continues to express his belief that interest rates need to be raised…. St. Louis Fed President James Bullard stated “the core of inflation is low, but still at manageable levels.
And that any additional quantitative easing undertaken by the FOMC should be a disciplined reaction to further disinflation risks.”…
The Gold market continues to trade within the technical support and resistance levels consistently….Traders are trying to decipher all the news on a daily basis…….
THE MAIN DRIVER IS SUPPLY & DEMAND….(HIGH DEMAND)……
GOLD SETTLED…..$1228.980 for the WEEK…..
MY SWING NUMBERS FOR MONDAY….8/23
RESISTANCE # 2………………$1240.00
RESISTANCE # 1………………$1234.00
PIVOT …………………………..$1229.00
SUPPORT # 1…………………..$1223.00
SUPPORT # 2…………………..$1217.00
Mike Daly / Gold Specialist
PFG BEST
THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX
