Gold has fallen again and those who used China buying gold, China backing their currency with gold, China being admitted to the IMF and now part of the SDR’s (Special Drawing Rights) that are allegedly to be backed by gold are all wondering how the yellow metal can still be falling. Those who thought the dollar was going to crash and see it going higher and higher wonder how, with all the debt the U.S. has to pay off now and with future obligations can the dollar be moving higher? And these same people don’t understand why gold is falling in price.
For the most part you know that I follow the dollar and because I have been bullish on the dollar I have said over and over this can put pressure on the price of the metals. Today we have the dollar right at the 98 mark and I think the next move will be over the 100 market then a test of a multi-year high of 120. If I am correct, does anyone not think this will continue to put more pressure on the price of gold?
LONG TERM DOLLAR
For this reason alone I can say we are going lower in the price of gold but I have many other indicators that also tell me this.
- Phone ringing for my business and that of my suppliers
- Premiums on metals falling
- No real fear
- Stock market higher
- Deflationary Credit Contraction
- Sentiment
- Chart reading
- My own research and simply seeing the weakness in price
Related posts
About Doug EberhardtDoug 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.