May 04, 2010 at 18:48 PM EDT
Daly Gold Report
Gold Settles $14.10 Lower Today... ($1169.20) Today's Gold market made yet another new 2010 high ($1192.80) prior to an avalanche sell-off mid-session. Gold had been ignoring early U.S Dollar strength and much lower energy prices as it continued to reflect...

Gold Settles $14.10 Lower Today... ($1169.20)

Today's Gold market made yet another new 2010 high ($1192.80) prior to an avalanche sell-off mid-session. Gold had been ignoring early U.S Dollar strength and much lower energy prices as it continued to reflect its "safe haven" status as the currency of choice.
However, this Gold market has been "top heavy" and technically over-bought and in need of a correction. The technical resistance between $1190.00 & $1195.00 produced some heavy selling volume and this coupled with the continued uncertainty in the European Union caused the "BULLS" to take profits and starting the "golden" snowball downhill . The selling frenzy took out support levels and executed "stop loss" orders
taking gold as low as $1166.90 before support re-emerged.

Investors remain skeptical concerning the ongoing European Union debt scenario which seems to change and worsen every day. The extreme 110 billion Euro price tag to aid Greece has investors speculating to whether the European Central bank will be forced to
"print more money" to offset Greece's debt. Anytime you print more money it becomes "worth less" and raises concerns of possible "inflation" to follow...

Spain and Portugal are under extreme pressure to get their inflated budget deficits under control if they are to seek aid from the European Union. Spain's Prime Minister Jose' Luis Rodriguez Zapatero was in Brussels and was quoted as saying "the Greek plan shows credibility of EU, shows solvency of Europe " and "Greece has what it needs, economic growth is vital, and sees sacrifices by Greek citizens"

Mr. Zapatero also stated "the rumor that Spain is seeking a bailout is "complete madness"......"we have restructure the financial sector and adapt to a smaller credit market"....

The Reserve Bank of Australia raised rated by ΒΌ or 25 basis point at their policy meeting...current rate is 4.50% ....

Maybe this is the dip the jewelers of India were looking for. Gold buying has been sluggish in India due to recent high prices.

My Swing Numbers for 5/5...(Wednesday)... June Gold
RESISTANCE # 2..................$1200.00
RESISTANCE # 1............... ..$1185.00
PIVOT ..................................$1176.00
SUPPORT # 1.......................$1159.00
SUPPORT # 2.......................$1150.00

Mike Daly / Gold Specialist
PFG BEST
mdaly@pfgbest.com
877-294-4669
312-775-3014
312-563-8029

*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*

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