Imperial Metals extends mineralization at Mount Polley mine
Mineralization was extended over a 895-metre interval grading 0.26% copper and 0.32 g/t gold.
This week the Gold market covered a $39.80 range, in which all but $1.10 occurred in today’s trading session. This week’s trade proved to be very choppy, volatile, and extremely difficult to decipher. The recent price retracement began as a technical overbought signal that triggered some profit taking that touched off stop-loss orders and causing forced liquidation for others. The avalanche sell-off this week was also fueled by India joining the central banks of North Korea, Thailand, and China in raising their key interest rates. Historically whenever central banks raise their rates it is negative for both Gold and Silver; however, today’s session produced a substantial rally as it roared back from the $1307.70 level to actually settle at $1340.70 and up $22.30 for the session and only $1.10 off the weeks high. This was a very impressive rally and I believe traders and investors alike re-entered the Gold and Silver markets as the support levels in both held preventing the Gold from trading under the psychological $1300.00 level.
News of the day included news from German Chancellor Merkel speech in Davos Switzerland; her comments included….
“If Euro fails, Europe fails”
“There is no doubt Germany will defend the Euro”
“Solidarity must go hand in hand with stability”
“Germany will show solidarity to its neighbors”
Egypt deployed its military to the streets of Cairo in an attempt to subdue the rioting in the streets as the thousands of demonstrators are showing their frustration with President Hosni Mubarak’s regime. This chaos is the result of nearly half of the 80 million citizens experiencing neglectful poverty. Anytime there turmoil that may affect a nation’s government, it is normally considered bullish for gold, it results in safer haven buying.
THE FOMC HELD A 2 DAY MEETING THIS WEEK:
The results of the FOMC meeting stated that the FED voted unanimously to keep everything the same including unchanged interest rates and quantitative easing. They also stated that the recovery has been “insufficient” to reduce joblessness and called the Housing sector depressed.
Despite signs that the U.S. economy may be improving the high unemployment rate coupled with record housing foreclosures will continue to be the drag on the world’s largest economy. So it is my opinion that the overall world economy is still very fragile and investors will continue to purchase physical precious metals to protect their wealth against pending global inflation.
MY SWING NUMBERS FOR JANUARY 31
FEBRUARY GOLD……
Resistance # 1…………$1371.00
Resistance # 2…………$1356.00
Pivot ………………………$1332.00
Support # 1…………….$1317.00
Support # 2…………….$1293.00
WE WILL MOVE TO APRIL GOLD ON MONDAY’S SWING NUMBER….
MARCH SILVER
Resistance # 2……………..$29.15
Resistance # 1……………..$28.54
Pivot……………………………$27.42
Support # 1…………………$26.80
Support # 2…………………$25.70
Mike Daly / Gold Specialist
PFG BEST
877-294-4669
312-563-8029
There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
