Strong Gold rally

The Wednesday trading session in the Gold market opened higher and traded for the most part in a $ 7.00 Dollar range all session long.(636.00-643.00). Even with the Crude Oil being very negative today theGold closed $6.00 + Dollars higher on the day closing at $639.10 due to a very weak U.S. Dollar.

The Gold community had it's eyes on the Middle-east and the threat of breaking of the truce.
Israel's army chief of staff Dan Halutz was quoted as saying " Israel could withdraw it's forces from southern Lebannon within 10 days, but only if the Lebanese army deploys quickly in the area ". Halutz added "If the Lebanese army does not move down within a number of days to the south... the way I see it, we must stop our withdrawal. "If the truce should be broken the Gold market should receive a surge of "safe haven " buying from all area's of the Gold trading sector.

The following are my guideline numbers for Thursday 8/17/06 for December Gold.....

resistance # 2 ..................................649.00
resistance # 1 ..................................644.00
pivot .................................................638.00
support # 1 ......................................633.00
support # 2 ......................................627.00


resistance = possible opportunity to sell market
support = possible opportunity to buy market
pivot = possible point in the market to determine direction
.