Weekly Gold Report
Image via WikipediaAnother Wild Week This week brought another wild trade and vast ranges to the Gold market as the yellow metal covered a $43.90 trading range as the world investors tried to decipher all the news from the globe....
2000 Yen banknote with Shureimon.

Image via Wikipedia

Another Wild Week

This week brought another wild trade and vast ranges to the Gold market as the yellow metal covered a $43.90 trading range as the world investors tried to decipher all the news from the globe. Today we learned that the situation with the Fukushima Nuclear Power Plant although still very serious may actually be improving. This is obviously great news ! Overnight the G7 countries agreed to the first coordinated currency intervention in over 10 years in order to weaken the value of the Japanese Yen, starting with the Bank of Japan.

Yesterday I wrote :There is a strong possibility of a military intervention from United Nation Forces into the civil war torn country of Libya. There will be a U.N vote at 5pm CST. (3/17) Muammar Ghadaffi has threatened to all air and sea traffic in the Mediterranean Sea in the event of foreign military intervention. The United Nations Security Council did indeed vote to authorize a no-fly zone and "all necessary measures "to protect Libyan people. The resolution authorized the use of military strikes. Today we learned that the Libyan government decided to comply with cease fire according to Libyan Foreign Minister as he stated:' The cease-fire will take the country back to safety"...."Libya takes great interest in protecting civilians".

It is my belief that the investment community is still using the precious Metals as a safe haven alternative investment as Libya, Bahrain , and Yemen, all Crude oil producing nations are experiencing civil unrest and it is effecting the world's supply of Oil....April Crude oil futures traded as high as $103.66 per barrel today, higher Crude prices are considered inflationary.

Historically Gold and silver retain value better than most commodities during times of inflation.

GOLD SETTLED AT $1416.10 FOR THE WEEK

SILVER SETTLED AT $35.58 FOR THE WEEK

WEEKLY HIGHLIGHTS:

Tuesday's Gold session covered a volatile $48.30 range as traders continue to watch and decipher the financial repercussions concerning the Japanese economy following the earthquakes and tsunami that has crippled the country.

The precious metals markets took a beating today as it appeared the central bank of Japan was selling Gold to inject 20 trillion Yen into the money markets to help calm investor fears. Fears heightened when reports of high radiation levels were reported in Tokyo as southerly winds brought the fallout from the Fukushima nuclear plant located north of Tokyo. The avalanche sell-off was also helped by investors selling their precious metals in order to meet margins in stock portfolio's. The recent chaos in Japan has trumped everything else and as a world economic power and a leader in the automotive industry there is no question the global investors are watching.

Investors world-wide are turning their physical precious metals into cash as radiation concerns grow.

Wednesday :

We began seeing interest from the Jewelers of India. Meantime we are approaching the April / May wedding season in India. I expect that the jewelers of India will begin buying gold to help stock their shelves for the upcoming season...

Thursday :

The U.S Department of Labor reported that Initial Jobless Claims were 385,000, this was a bit better than the projected 388,000

MY SWING NUMBERS....MONDAY 3/21

APRIL GOLD

RESISTANCE # 2..........................$1436.00
RESISTANCE # 1..........................$1426.00
PIVOT ........................................$1414.00

SUPPORT # 1..............................$1404.00
SUPPORT # 2..............................$1392.00
VOLUME......................................119,000

MAY SILVER

RESISTANCE # 2..........................$36.08
RESISTANCE # 1..........................$34.90
PIVOT.......................................... $34.90
SUPPORT # 1..............................$34.39
SUPPORT # 2..............................$33.72

Mike Daly / GOLD SPECIALIST
PFG BEST

mdaly@pfgbest.com
312-563-8029
877-294-4669

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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