PPI Rallies Gold Up 8.00..........................

Today's Gold market reacted to very Bullish (for Gold) PPI Report.
PPI = Producer Price Index. This Program measures the average change over time in the
selling prices received by domestic producers for their output.
The 2% (November) increase made it the Highest PPI since 1974.
The report prompted the selling of the U.S. Dollar and in turn the Buying of the Gold.
Always remember Gold is the anti Dollar. This PPI Report indicated to many traders the threat of inflation is alive and well. The Dollar was over 60 pts. Lower at the Gold close helping the Gold market to settle nearly $8.00 Higher. The demand for physical Gold is still High and with the OPEC Oil production cut looming in February look for the U.S. Dollar to remain under pressure for the short term. Look for Wednesday's market to be choppy in anticipation to
Thursday's... GDP and Export Sales Reports to be made public.(7:30am cst.).
Tuesday's HIGH..626.00 LOW....618.30 CLOSE...626.00

The following are my guideline numbers for 12/20 Wednesday for February Gold............

resistance # 2................631.00
resistance # 1................627.50
pivot........623.00
support # 1.................620.00
support # 2.................615.00

resistance = possible point to sell
pivot = possible point to determine direction
support = possible point to buy

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