Greetings! , 

After trading almost $10 higher on the day, gold is currently trading off about 2-1/2 dollars at 1729.50.

The E.U. sovereign debt crisis seems a little bit more resolved today according to recent reports. Currently it is believed that the Greek government and its private financiers have reached a debt restructuring deal. In essence this deal on the urgently needed austerity measures required a financing package valued at €130 billion. With this cash infusion Greece will be able to make its bond payment of €14.5 billion on March 20.

If the European Union is able to complete this financing package it shows their ability to handle a major financial crisis  in one of its member nations. This is an indication of a strong platform developed by the E.U. leadership team that does have the ability to solve the difficult credit problems faced by many of their member countries. It certainly increases their credibility and their unity.

This deal is considered modestly bullish for the commodity sector, including the precious metals complex. This put pressure on the U.S. dollar, vis-à-vis the euro. 

This news has had an extremely bullish effect on the global equities markets. Gold has been oscillating between a safe haven asset and a risk on, risk off investment. As a safe haven investment, look for gold to rally on any escalation of the E.U. sovereign debt crisis.

Ob-La-Di, Ob-La-Da... life goes on.

As always wishing you good trading,

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Proper Action

GOLD: Maintain Long @1580. Our current stop sits just below 1706. My recommendation is to maintain your current position and stop placement.

MARKET FORECAST

Gary S. Wagner

Gold: Precious metals are once again firmly planted within a choppy market where we are bound to see an increase in volatility. The knee-jerk reaction as new news becomes available in the marketplace has planted the precious metals markets in a defined range in which we see moderately sizable moves occurring frequently. I believe that both gold and silver are currently forming a base and will begin to trade higher in the near future. Gold has tested the 1750 area, which is our current target, but as of now gold has been unable to break and trade above it. This confirms our assumption made a few weeks ago that the 1750 price point in gold is our current resistance.  

Silver is still in a bullish uptrend. However, it is currently forming a base. Its six week uptrend remains firmly in place. Our current resistance is at 34.49 with our current target still at $35.50 per ounce.

Gold 360 Minute Chart

 SILVER: Daily Chart

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