From the Trading Desk
Since the beginning of March, US equities have been on a steady decline but the selling pressure waned over the past two days. The Dow held its 50 day moving average yesterday and rallied 150 points today. The Dow’s losses over the past month eventually translated into increased risk appetite and safe haven buying for gold. The yellow metal has made stable gains since holding the $1,200 area in mid-March. US equities upwards price action today caused gold to fail, yet again, at its 200 day moving average of $1,260. This is the major short term level to watch and a clean break above it would encourage fresh longs to enter the market. Silver’s ascension has accelerated over the past few days and $18.50, the area it ultimately failed at in late February/early March, is the near term target. Physical demand of fabricated products in North America continues to be weak.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.