Janet Yellen may have done for the markets what Alan Greenspan did so many years ago; put a floor in it. We will find out tomorrow after the unemployment numbers come out. I feel we are at the cusp right now, and lean long the stock market and lower for gold overall, but the market seems to be data driven and I would be flat going into tomorrow’s action and jump on something after we get the report. The initial reaction will be tough to jump on, but the trend should continue in that direction the rest of the day.
Gold was down with silver today, but hasn’t yet broke down below that Nov. 5th low. I think we will break out of this trend soon and have our answers, possibly after the report tomorrow.
The dollar was up today which could be part of why gold was down. If the dollar can get past 96 then 100, then gold may be on its way to under $1,000 as I have been talking about. Would still prefer to see a move up in gold first. Just not sure I will get it.
Interest rates jumped higher to 2.31 before falling 6 cents to close at 2.18.
Part of my indicators that I watch is my own business. I know we have the lowest prices in gold and even with the lowest prices, the phone is not ringing as much. I have to keep on top of the markets the best I can and if the phone isn’t ringing here, and at my suppliers (I ask them all the time) then the price will likely fall. Not too many people have this insight into the precious metals market but it is one of the best indicators I have in relating what I think will happen with the markets. Even with this dip again, the phone is not ringing like it did the last small dip of a week ago. That’s quite telling to me. Gold really does need a bad unemployment report tomorrow or its in for some trouble. The only thing it has going for it before the report was the bounce up in the mining stocks at the end of the day. Are the mining stocks indicating a bull move is coming? We should know by tomorrow.
Next report is Sunday which will recap tomorrow’s price action in gold and silver as well as set us up for what to expect the next week.
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.