GOLD REMAINS IN ESTABLISHED TRADING RANGE

by Joe Battaglia | March 30, 2009

Gold is up $6 in early trading after trading lower overnight and in the electronic pre-market. However, silver remains down $.06. The Dow Jones Industrial Average is down heavily losing 240 points in the first half-hour of trading. The dollar is up 65 basis points at 85.77 and oil is down $2.16 at $50.20 a barrel.

There are tens of thousands of people demonstrating at the G20 meeting in London. Vice President Biden has urged them to be calm and patient to give the G20 ministers a chance to significantly work on the difficulties facing the global economy.

The President will be making a speech with regard to General Motors this morning. He is widely expected to confirm the resignation of Wagner as CEO and to set down some rules for future bailouts. Many think he will confirm that either GM comes up with an expectable bailout plan or they will be forced into bankruptcy. On the other hand, Chrysler is either going to be required to complete its deal with Fiat or fall into bankruptcy within the next 30 days.

This morning gold moved higher as equities fell heavily. Gold is up on safe haven demand, as was the dollar. It is clear when risk re-emerges in the equity markets, gold surges on safe haven demand. This has been a repeating pattern. There is also data coming out to confirm that funds continue to be significant buyers of gold. However, last week funds trimmed their net long position in silver. The markets are extremely volatile today and could move in fairly wide swings. They may very well be news driven throughout the day.

Last week, the demand for gold in Europe was quite strong. For the moment gold remains within the established trading range of the last few months. It has excellent support in the $880 range and resistance at around $950. Thus far the trading patterns have been solid, demonstrating a high-level consolidation as this market has done many times. Demand for physical gold continues to underpin the market.

Russia has again called for a new global currency represented by Special Drawing Rights from the IMF. They state they want the ruble, yuan, and gold as part of the basket of currencies. They also indicated they do not see an agreement on this being reached at the current G20 meeting. However, China, Russia, Brazil, India and a number of other countries are pushing hard to obtain a new global currency. Sooner or later it is likely to come to pass.

This is an opportunity to acquire gold while it continues to trade below $1,000 an ounce. Some analysts believe gold will be above $1,000 in the next 90 days.

Goldline offers you a unique benefit in that you may qualify to utilize Goldline's Price Guarantee Program. This program provides a two-week window of opportunity to re-price your order in the event of a correction. In essence, it provides a cushion against corrections. Call Goldline at 1-877-341-2646 to learn the details of this special offer. You should also ask for the free information package. It contains three separate articles discussing the possibility of the world moving towards a new global currency. These are very important articles for every American to read. There are also articles in the information package forecasting price performance for gold and silver assets that you will find very helpful. One of the articles is brand new and it contains the opinions of one of the world's foremost precious metal expert, Pierre Lassonde. Another article from Forbes.com points out that there is no money to cover these bailouts and stimulus packages. The essence of the article is that the government will be forced to devalue the dollar. Call Goldline now at 1-877-341-2646 for the free information package.

Contact Goldline and ask them to explain the features, benefits and cost structure of the various gold and silver products that are available. Select those that best meet your own personal and individual needs and objectives. Those looking for low transaction costs may wish to consider bullion assets such as American Eagles, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these assets.

If you would like to take advantage of the Price Guarantee Program, which provides you with a two-week window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.

To receive the free information package, including articles on the dollar, the economy and gold, call Goldline at 1-877-341-2646. Goldline also provides several other helpful articles. There are a number of other independent third-party source articles that you will find extremely helpful and informative. You will also receive the Client Account Agreement, a company brochure and a Coin Facts Risk Disclosure booklet. Read these carefully before you make a purchase. Call Goldline now at 1-877-341-2646 to receive your free information package.

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

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