Greetings!,

Today's U.S. data revealed better than estimated economic reports. The reports also revealed a renewed optimism that Greece will in fact obtain a second bailout. These fundamental factors are cited as the primary reasons for the substantial rally witnessed in the U.S. equities markets this morning.

Interestingly enough, this news moved gold off of its intraday low last night. After trading lower throughout the night and hitting an intraday low of 1706, gold was able to rally back to unchanged status, currently trading at 1729.

According to Bloomberg news "... three euro area officials said the European Central Bank is swapping its older Greek bonds for new ones to ensure it isn't forced to take losses in a debt restructuring." Also noteworthy is that European governments are considering cutting interest rates on emergency loans to Greece and using contributions from the E.C.B to plug a new financing gap in the second bailout program for Athens.

One thing is for sure, I believe we are in for most interesting times ahead.

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 & Silver: unlike the fundamentals of the precious metals markets, the technicals are rather flat today. There are really two ways to look at the trading activity over the last three weeks. First we can view this sideways trading activity as a market that is forming a base, finding support before moving higher. However, there is another possible interpretation. We can view this market consolidation as the inability for precious metals to move higher, thereby finding resistance that, at least for now, it cannot break through. I've always believed that a market that cannot move higher will eventually move lower. With stops in place our trading decision is clear, we will maintain our current position and as long as the markets trade sideways we will look for further signs of either a strengthening or a weakening market.

Gold 720 Minute Chart

 SILVER Daily Chart:

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