Today’s Gold trade saw a late session rally based off technical support and Geo-political tensions. There is technical support between $1100.00 and the $1180.00 level helped by vast interest from the jewelers of India who have expressed their willingness to purchase bullion at these levels. As the Indian “Wedding Season” continues (through January) the jewelers of India will continue to have a strong buying presence.
Crude Oil rallied today off of reports that Iranian soldiers had crossed into Iraqi territory and were occupying a southern Iraqi oilfield. There have been disputes over this border territory for years. This action has constituted another Geo-political tension threat that benefits the Gold market. The Gold market and Crude Oil markets are linked and for the most part are both “anti” U.S Dollar.
A war environment is normally “BULLISH” Gold especially in Oil producing regions. With any threat to Oil supplies usually send investors scrambling to buy the Gold. Investors need to keep an eye on that situation.
There are many gold bugs and analysts alike who believe the FED has printed and injected too many Dollars into the world economy which will heighten the appeal for Gold and Silver as they will less financial liabilities.
My swing numbers for 12/21…for February Gold….
RESISTANCE # 2……….$1129.00
RESISTANCE # 1……….$1120.00
PIVOT…………………….$1109.00
SUPPORT # 1…………...$1100.00
SUPPORT # 2………… $1089.00
Mike Daly is a gold specialist for PFG BEST: http://www.pfgbest.com.
