This week the Gold trade covered a $28.80 range as the market continues to reflect the global economic data. This week’s data was certainly more U.S Dollar bullish and therefore forced the Gold bugs to reexamine long positions as the news from the European Union lent much needed strength to the U.S Dollar.
FINANCE NEWS FROM THE EURO REGION:
*Greek Default Swaps Rise 45.5 Basis Points to record 1,567.5
*Belgium Credit-Default Swaps rise 8 Basis Points to 153
*France Credit-Default Swaps Rise 5 Basis Points to 76
*Spain Credit-Default Swaps Rise 14 Basis Points to 275
*Italy Credit-Default Swaps Rise 9 Basis Points to 174
*Ireland Default-Swaps Rise 20 Basis Points to Record 710
*Portugal Default-Swaps Rise 11 Basis Points to Record 730
S&P said that France needs further reforms in order to keep its AAA rating in the long term…FIRST we have about France!
This week’s highlights
Thursday: News from the European Union appears to be sketchy at best as an agreement between The European Union and Greece concerning the new fiscal plan apparently has been reached.
Today the Greek cabinet has approved a plan for a sale of Greece’s assets in order to repay previous loans. Stay tuned this scenario changes by the minute.
There are strong hints that China and European Union intend to raise their Interest Rates….It is thought that the European union will raise in July and China may be sooner than later…….Both Central Banks are citing very high inflation.
Today’s initial jobless Claims 8,000 more than projected at 427,000…..FOMC Vice-Chairman Janet Yellen Say’s she sees “No quick or easy solution for the housing market” and stated that the housing recovery would be “drawn out recovery” and also acknowledged that the price tumble in the housing sector has left “deep scars” on families.
There are reports out of Libya stating that Moamar Gaddafi’s days as leader of Libya may be numbered.
Wednesday: During yesterday’s speech Chairman Bernanke stated that there would not be Quantitative Easing 3… This certainly was “bearish” for the precious metals. Less money printed means more value for the Dollar. I am not totally convinced that we have seen the last of Quantitative Easing but according to Mr. Bernanke it will not be continued when QE2 expires.
Traders and Investors alike will continue to use daily economic data to base their trading strategies we are now entering the summer markets and traders know that possibilities of range bound and sideways markets are in their future, at least historically.
MY SWING NUMBERS 6/13
AUGUST GOLD
RESISTANCE # 2…………$1554.00
RESISTANCE # 1…………$1541.00
PIVOT……………………….$1534.00
SUPPORT # 1………… …$1521.00
SUPPORT # 2………… …$1514.00
AUGUST SILVER
RESISTANCE # 2…………$38.47
RESISTANCE # 1…… …..$37.46
PIVOT……………………….$36.79
SUPPORT # 1…………….$35.71
SUPPORT # 2…………..$35.11
Mike Daly / GOLD SPECIALIST
PFG BEST
312-563-8029
877-294-4669
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