Precious Metals Market Comments

Gold Settles $8.20 Lower ... ($1613.90)

Today's August Gold futures traded choppy $19.70 range as appeared traders may have been motivated to take profits after Friday's mammoth $57.90 rally. It is my opinion that traders and investors alike may have been looking for a continuation of Friday's rally starting with the Asian sector starting Sunday night. However, this did not materialize and with Crude Oil prices trading an 8 month low of $81.21 barrel overnight and seasoned gold bugs have learned to take profits when the opportunity presents itself. Traders and global investors are expecting more monetary stimulus as worries regarding the growth of the U.S economy. However, Gold traders have a long memory and until the FOMC takes action I believe the traders of precious metals will remain tentative and aggressively take profits when presented. We all remember February 29^th

when the FOMC announced that the economy was growing at a moderate pace and therefore there would not be a need for more stimulus in the near future. With that announcement Gold broke over $100 from high to low....Long time Gold traders will remain disciplined and trade the action.......

Economic Data: 6/5

Non Manufacturing Index ..........9:00 am. CST.

MY SWING NUMBERS 6/5

August Gold

RESISTANCE # 2.............$1638.00

RESISTANCE 3 1.............$1626.00

PIVOT........................... $1618.00

SUPPORT # 1..................$1606.00

SUPPORT # 2..................$1598.00

VOLUME.........................307,000

July Silver

RESISTANCE # 2............$28.95

RESISTANCE # 1............$28.48

PIVOT...........................$28.22

SUPPORT # 1.................$27.75

SUPPORT # 2.................$27.49

VOLUME..................... 65,000

PFGBEST Research Division

mdaly@pfgbest.com

877-294-4669

312-7753014

There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.