Fears of inflation

The trading session in the Tuesday Gold market was a very cautious trade which reacted to each piece of news and speculation during the daytime market.

Reports that Hezbollah had fired as many as 10 rockets on Israeli troops as they were pulling back had traders wondering if the cease-fire would last.

The U.S. PPI report was Dollar friendly and bearish for Gold.

Investors taking "safe haven " Gold profits and selling Crude Oil.

The speculation of inflation on the horizon I believe kept Gold from a bigger break.

I think the gold trading community is still buying 750-1000 strike calls in anticipation
of inflation and the speculation that the true between Israel and Hezbollah will not last.

The following are my guideline numbers for 8/16 in December Gold.......

resistance # 2 ................................. 642.00
resistance # 1 ................................. 637.50
pivot .............................................. 634.00
support # 1 ..................................... 630.00
support # 2 ..................................... 626,00



resistance = possible place to sell market
support = possible place to buy market
pivot = possible point in the market to show direction