Today we saw gold shoot higher with a stronger dollar. There really is only one reason for today’s price action and it was fund managers buying to show their investors they had the hottest asset; gold, the last month in their portfolio. We should see a selloff soon. There is no fundamental reason gold is higher but the VIX did shoot up a little bit today as the market fell 100 points on lousy data.
Overnight we’ll have China PMI Manufacturing to deal with and I don’t expect it to be good. A little more higher in gold a possibility.
Silver couldn’t even muster a move over $16, and definitely acting like the industrial metal. If Chinese data doesn’t come in good, silver may lead gold lower.
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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
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