I will entitle this report; Watch Out Gold Bugs! – at least for the time being.
We should have a little pullback in metals at the present time. The dollar bounced today off the lows and looks ripe to test 100 again. If it moves past 100 then it can go higher and we have one more pullback in gold before it takes off higher. Gold mining stocks are already feeling the pain.
The price of gold has been resilient and it is more than likely a hope and a prayer related to the French election and the results of Le Pen who represents more the exit side than the pro Euro side. Obviously there will be a “sell the news” behind this as Le Pen has another round of voting to go no matter how well she does this weekend.
Silver dipped below 18 for the first time in awhile showing weakness there too.
It may not be tomorrow but next week we should head lower and short term traders should be positioned that way. Watch the dollar for confirmation of a pullback with a move over 100.
JDST triggered long for us on 4/18 and we were in it at 14.70 already. It is presently 16.11 up 9.59% from our original entry but as high as 16.94% so far (yesterday).
The markets also seem poised for a move higher after a big move up today.
Is oil next?
I would hold off a bit on purchases of metals and see if you can get it a bit cheaper in the next week or two. Gold sales are down all around which is another sign of weakness. But believe me when I say, patience will eventually be rewarded. Hang in there.
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
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