It sure looks like gold wants to touch that $1,300 mark before it reverses course. We’re up over $6 in Asian trading to $1,266 after hitting a high thus far of $1,269.40. Friday we saw gold higher with a downturn on the dollar which broke below 98 again. The dollar currently is up 12 cents to 97.37.
The interesting thing to me is gold is not following the script of moving opposite the VIX of late. The stock market has been moving higher and gold has been moving higher with it.
I really thought the high was in for gold on Friday when we had a big turnaround after spiking higher but so far Asian traders don’t seem to think so. I do however believe they are not the ones in control of this market. I think the gold move is overbought and we are heading lower soon enough. Whether or not we hit $1,300 first is the only question. If the stock market does continue higher, I think the gold trade will be sold and the stock market, which has slowly crept higher, will catch a bid and money should flow there for a bit.
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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