This week we traded unbelievable ranges in Gold, Silver, as well as the Crude Oil. JUNE GOLD this week traded a High of $1577.40 and a Low of $1462.50 for a range of $114.90 and SETTLED at $1491.60
JULY SILVER traded a High $48.19 and a Low of $33.03.5 for a range of $15.15.5 – UNBELIEVABLE! and SETTLED at $35.28.7
JUNE CRUDE OIL trade a High of $114.863 per barrel and a Low of $94.63 for a range of $20.20 and SETTLED at $98.06
These precious metals have been so technically overbought and that any bit of Dollar friendly news could tank these markets as these top heavy markets increase volatility tremendously often causing an avalanche sell-off scenario, sort of a domino effect. However, since the middle of January 2010 and the Egyptian revolution the price of Crude Oil has sky rocketed and heightened the globes inflationary concerns. The speculators of the world have seen it fit to sell the Crude Oil and precious metals positions after the death of Osama Bin Laden and the strengthening of the U.S Dollar.
The Central Bank of India also may have contributed to this latest slide after they raised their Interest Rates a surprising .50 basis point. Normally when Central banks raise rates it should effect the precious metals in a negative manner however, this was not the case when the ECB and China raised rates a few weeks past.
The HIGHER margin requirements installed by the CME are also contributing to the mammoth Silver sell-off. I expect the Energy and precious metal markets to remain VERY volatile and susceptible to geo-political and economic data.
Germany’s Der Spiegel Magazine reported that Greece is considering leaving the European Union, it was reported that Athens was considering a new currency. The EURO zone financial ministers have refused to comment. Let’s remember that in the middle of January prior to the ouster of Hosni Mubarak from Egypt we Gold bugs were concerned whether Gold would hold the $1300.00. This was 4 months ago. These markets are going to remain very volatile. These markets are not for the faint of heart!
MY SWING NUMBERS FOR 5/9
JUNE GOLD
RESISTANCE # 2…………$1514.00
RESISTANCE # 1…………$1503.00
PIVOT ……………………..$1487.00
SUPPORT # 1…………….$1475.00
SUPPORT # 2…………….$1460.00
JULY SILVER
RESISTANCE # 2………….$38.31
RESISTANCE # 1………….$36.79
PIVOT………………………..$34.91
SUPPORT # 1……………..$33.40
SUPPORT # 2……………..$31.51
Mike Daly / Gold Specialist
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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.
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