21
Jul

Gold and Silver Current Thoughts 7-21-2015

My latest article was just posted to Seeking Alpha:

April Call To Wait And Buy Gold Below $1,000 Still In Effect

http://seekingalpha.com/article/3344695-april-call-to-wait-and-buy-gold-below-1000-still-in-effect

It was also Editor’s Pick http://seekingalpha.com/analysis/all/editors-picks

From the Trading Desk

In thin Asian trading conditions on Sunday night, gold plummeted $50 in a matter of two minutes.  Over a million ounces traded on the electronic exchange in that time span with gold falling from $1,130 all the way down to $1,080 as stops were triggered and momentum selling pushed it lower.  The five year low at $1,080 lasted for mere seconds as algorithmic traders lifted it immediately to recover to $1,110.  While several background stories were going on at the time of this tremendous market move, there really didn’t seem to be one definitive catalyst to warrant it.  Some market analysts attributed the move to the prospect of higher US interest rates, but this has been a developing story for quite some time now anyway.  Others pointed to a disappointing rise in gold reserves for the People’s Bank of China.  Whatever was the cause of the selloff, we are in a new range for gold now.

The $1,080 level is clearly support for the time being and is actually the third point in a trendline dating all the way back to 2006.  Resistance is coming in at $1,130, the previous 5 year low and the level where gold broke down from on Sunday night.  Any rally in gold will likely be sold ahead of $1,130.  Coin and bar physical demand in the US remains strong.  Most non-sovereign mint fabricated silver products are delayed and premiums have risen to meet demand.  Gold remains more readily available but is starting to see some delays on certain products as well.  Call to check in on availability and premiums as they are subject to change rapidly and without notice in these volatile markets.

Yesterday in my Current Thoughts I said; “Maybe we get a breather with it now and a bounce in gold.”

The dollar started lower today and gold got a nice bounce off yesterday’s low of $1,080 hitting $1,110.80 but fell and hit $1,097.70 and is presently at $1,103.20,  Silver had a range of $14.64 at the low and $15.06 at the high and is presently trading at $14.93 an ounce.

Where do I think prices will go from here?

My next article will explain everything. It is 2500 words long and full of good information for investors and traders alike. Took about 8 hours to write (although I spend every day between articles sending me bits of information to analyze for writing). The article is titled “April Call To Wait And Buy Gold Below $1,000 Still in Effect” has been submitted to Seeking Alpha and waiting for editor approval. It will be posted on the blog once approved, hopefully tonight if the editors don’t object to anything I wrote which they have been kind to me of late.

I’ll also post a link here for the article once it is live.

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About Doug Eberhardt

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

Disclosure:

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.