The Metals Report

by Mike Daly

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WEEKLY GOLD REPORT(17)

7/6/2012

Precious Metals Market Comments

by Mike Daly, PFGBEST

1-877-294-4669

mdaly@PFGBEST.com
Friday, July 06, 2012 at 12:32 PM

Gold Settles $30.50 Lower … ($1578.90)

Today’s August Gold futures traded a very wide $34.20 range as mediocre Unemployment data fueled today’s sell-off. After the U,S Department of Labor is still adding jobs- 80,000 not earth shattering but not disappointing either. The fact that the U.S is adding jobs may have signaled to traders and investors alike that QE 3 may pushed back once again during the next FOMC meeting Tuesday July 31st. The U.S Dollar traded a 2 year high versus the Euro following the Unemployment number. It is evident that traders and investors alike are choosing the Dollar and U.S Treasuries as there safe haven investment choice. Lower Crude Oil prices added to Gold’s price drop.

NEWS FROM THE WEEK:

THURSDAY:
Today’s August Gold futures traded a choppy and volatile $27.00 range. The session yielded light volume as traders may have taken profits as the U.S Dollar gained strength against the Euro today. Today European Central Bank Governing Council member Jens Weidman said the results of last month’s European summit didn’t bring any clarity as to the direction the monetary union is taking according Bloomberg. So once again the news from the Euro region is sketchy at best. Traders and investors alike may also be sidelined awaiting tomorrows UNEMPLOYMENT data due out at 7:30 am. cst… Crude Oil prices traded lower to help pressure the lower precious metals prices as well. August Crude Oil futures traded as low as $86.50 per barrel today.

U.S Department of Labor released the Initial Jobless Claims as 374,000. This was better than the 385,000 that had been projected………….

TUESDAY:
Today’s August Gold futures traded a wide $30.40 range as “ bullish” precious metals news sent traders and investors alike seeking gold as their “safe haven” investment of choice. Crude Oil and precious metals rallied strong on hints that central banks from Europe to China may implement monetary easing to jump start their sluggish economies. The European Central Bank is expected to cut interest rates to help slow the regions debt crisis. Cutting rates and monetary easing are historically “bullish” precious metals. The European Union is applying new sanctions against Iran for its continued quest to become nuclear capable. In response it has been reported that the Iranian parliament is working on a bill to shut down the Strait of Hormuz to Oil tankers belonging to countries applying the new sanctions….Stay tuned!

On July 1st 2011 August Gold settled at $1491.60 *

MONDAY:
Today’s August Gold futures traded a seesaw $16.20 range.
After Friday’s mammoth ($53.80) rally it appeared that traders took profits as the rally momentum stalled during the overnight Asian trade. Once again the $1600.00 trading level has become a psychological pivot point. Tuesday’s markets will close early and Wednesday’s U.S markets will be closed in observance of Independence Day. With the week’s abbreviated trading schedule coupled with the UNEMPLOYMENT DATA on Friday the 6th of July it certainly makes sense for traders to liquidate profitable positions when available. September Silver traded a tight 42 cent range and settled 11.3 cents lower and settled at $27.49.9 per ounce…

MY SWING NUMBERS 7/9
August Gold
RESISTANCE # 2…………. $1623.00
RESISTANCE # 1…………. $1602.00
PIVOT……………………… .$1589.00
SUPPORT # 1……………....$1566.00
SUPPORT # 2……………....$1555.00
VOLUME…………………….148,000

September Silver
RESISTANCE # 2…………...$28.00
RESISTANCE # 1…………...$27.51
PIVOT……………………….. $27.21
SUPPORT # 1……………….$26.61
SUPPORT # 2……………….$26.32
VOLUME…………………… .35,000

PFGBEST Research Division
mdaly@pfgbest.com 
877-294-4669
312-775-3014

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.

Mike Daly
PFGBEST Broker
(312) 775-3014
mdaly@pfgbest.com
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