Today’s February Gold futures traded a choppy $22.00 range as the latest rally momentum continued for the third straight trading session. Today European Central Bank President Mario Draghi stated the underlying pace of the EU’s monetary expansion is moderate and sees tentative signs of stabilization in the economy. He also expects a gradual recovery but, warned the Euro region still has substantial downside risks. Gold also rallied as borrowing costs for both Spain and Italy were lowered. It is my opinion that global investors are speculating that the FOMC, the ECB, and China may all have intentions of near future monetary easing…
Investors are turning toward the precious metals as of late simply because they lack confidence in the world’s fiat currencies. There has been heavy gold buying coming from the Asian sector primarily China and India.
The weekly Initial Jobless Claims number was 399,000. This was projected to be 375,000.
The rating agency Egan James announced that they cut Portugal’s credit rating from BB –B+.
MY SWING NUMBERS 1/13
FEBRUARY GOLD
RESISTANCE # 2……………….$1673.00
RESISTANCE # 1……………….$1661.00
PIVOT…………………………….$1651.00
SUPPORT # 1…………………...$1638.00
SUPPORT # 2…………………...$1629.00
VOLUME …………………………145,000
MARCH SILVER
RESISTANCE # 2……………….$31.02
RESISTANCE # 1……………….$30.57
PIVOT…………………………….$30.22
SUPPORT # 1…………………...$29.77
SUPPORT # 2…………………...$29.42
VOLUME…………………………37,000