Gold Close $21.70 Lower....................

Volatility………….. The volatility in the recent markets has been phenomenal. These markets truly tell us how fragile the economy is at this point. Many traders believed the FOMC should have cut rates to help the very sluggish Housing sector and Mortgage industry present credit crunch. This recent avalanche in the Stock Indices and metals certainly has the trading industry spooked and trying to protect their portfolios. Many traders are sitting on the side-lines and looking for further support from the Federal Reserve. Traders have been liquidating positions in various commodities and transferring monies into their Stock Market accounts to protect margins. This has caused a Domino affect in many markets including the precious metals and grains to name a few. The professional Gold trading community has seen this type of volatility before and hopefully has learned to adapt to these types of market conditions. Most experienced traders realize markets’ involving portfolio, public, and hedge funds all trying to liquidate positions at once creates a avalanche affect and no experienced trader is willing to buy into this volatility. When floor traders and others are UN-willing to post bids or make markets the avalanche will continue until a support level is found. As a trader you desire volatility and volume. However the recent volatility requires hedged positions and the willingness to take profits when presented. I have a feeling the Volatility will be around until the FOMC cuts rates. Those who read my blog will tell you I have been concerned about the foreclosures and suffering housing sector for the past six months. HIGH......675.70 LOW.....652.00 CLOSE....658.00 PIVOT NUMBERS FOR FRIDAY 8/17..........DECEMBER GOLD............. RESISTANCE #2..................683.00 RESISTANCE #1..................677.00 PIVOT.......................662.00 SUPPORT #1........................648.00 SUPPORT #2........................640.00 I HAVE A LIMITED SUPPLY OF FREE OPTION STRATEGY BOOKLETS........... TO OPEN AN ACCOUNT FULL SERVICE / SELF DIRECT / 888-282-2770 TRADE SMART....................................