Gold was down early and never really did anything today. The mining stocks fared worse and some are starting to break down. Could be a sign.
Interest rates are picking up and the dollar is falling with gold. Something has to give soon and until we break the $1,158 price in gold I have to lean long. But I don’t like seeing the mining stocks start to give up the ghost.
Initial jobless claims tomorrow is the only data. We should get a move in precious metals with it as well as Friday’s data of nonfarm payrolls and the unemployment rate.
This may just be the catalyst to get us the move down or up. I would still prefer higher and with gold sitting at $1,190, we really aren’t that far from $1,200 and a move over that price and we may get the summer run to coincide with a further dollar decline.
But keep in mind I am overall still dollar bullish and I think gold can still break below $1,000, possibly by October. I’ll have to reassess all of my indicators to see if they are all in sync but for now, gold is NOT behaving like it should. I will say that. Gold should be moving higher, not lower. The trend is not really sticking its neck out at present, so I would sit on my hands till after the data tomorrow and Friday.
Jnet Yellen had this to say about the markets today; “I guess I would highlight that equity valuations at this point generally are quite high,” Yellen said. “They’re not so high when you compare the returns on equities to the returns on safe assets like bonds, which are also very low but there are potential dangers there.” This is reminiscent of Greenspan’s “Irrational exuberance” comment in 1996. It’s not something these people should even be commenting on in my opinion. It’s not part of their mandate. But maybe like in 1996 we get a stock market bounce now which may affect the price of gold.
During this slowdown in the metals I am working on finishing my next book, Illusions of Wealth. My goal with it is to have it out to the public before the market tops (I don’t think it has) and before gold bottoms (I don’t think it has). You’ll find the book to be a good read like my last one Buy Gold and Silver Safely with some very good information on investing in general and a few things that will shock a lot of people about our monetary and financial system. I’ll also be coming out with some videos that will wake a few people up.
The research never ends and I do enjoy it and hope that you do too.
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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