Tough Trade....

The Thursday 8/10/06 Gold trading session started out calm enough and with the "rumor" of a possible cease-fire in Lebannon which caused the Crude Oil to fall over 200 points and take the Gold market from 663.00 (opening range) steadily downward to a low of 645.50 before settling at 646.20. Closing $16.00 lower for the day.

Also the foiled terror plot and the arrests of 21 people who planned to board and blow up passenger airplanes over the Atlantic Ocean caused already nervous traders to duck for cover.

The following are my guideline numbers for 8/11/06 December Gold.

resistance # 2...............671.50
resistance # 1................658.50
pivot...............................652.00
support # 1....................639.00
support# 2.....................632.50


resistance = possible place to sell market
support = possible place to buy market
pivot = position in market that may determine direction