Gold fell today while at the same time the dollar was down and mining stocks higher. Who is leading whom here? I think the market itself is confused with gold leading the way lower. We simply need to break that 52 week low and $1,000 is the next stop. We’re simply dealing with some 12 year resistance in the dollar at present as you can see from the following chart. When you are dealing with that many years, you’ll see a stronger resistance and that’s where we are.
We are fighting this resistance like Cutler’s last stand and I don’t mean the Chicago Bears QB. There will be no comeback for gold even if it were to move a bit higher from here before breaking to lower lows. But gold’s time will come into play I think once we hit the $900 level. If I’m right, then I will be the busiest gold dealer around because I literally have millions waiting for my “all in” article. And above that I am sure there will be many I’m not even aware of that appreciate my honesty in telling you what I see with gold in lower prices, even though I sell it for a living. You’ll never see a realtor talk you out of buying a house, that’s for sure.
Tomorrow we may get our first inkling into whether we just break down or try and bounce once again in gold. Today was weaker than stronger and I have to lean we fall through to lower prices sometime this week or next and it will more than likely be with the dollar pushing past 100. With the miners up today, I can’t ignore that and will definitely catch a nice bounce up in JNUG or NUGT if the market wants to give it to me tomorrow.
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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