We had a nice run up in gold today and silver took center stage finally pushing past $17. I had written an exclusive article for Seeking Alpha on Sunday saying silver could hit the $17-$18 range and it did do just that today. The dollar, as I have been saying, is the culprit as it broke below 94 for the first time in a long time. It did however close above 94 as gold and silver gave back a small amount of their gains by the end of the day.
We still need to keep an eye on the dollar as our key to gold and silver. I don’t see a move much below 90 on the index as the ultimate reversal area for the metals so we have to see if we get that far. Gold can push past $1,300 if that’s the case. Jury is out on whether we get a blow off top fast move to $1,400 before the rug is pulled. All depends on what Shinzo Abe and Mario Draghi has up their sleeves. I expect the focus to return to the issues in Europe and Japan soon enough.
The Shanghai gold exchange opened today and some may think that this is why gold moved higher today. I believe it is the dollar move from mind 94’s to under 94 instead as I think the opening of the gold exchange in China was priced in already if it was going to be a move at all.
Gold is still not breaking above the high of $1,272 from 45 days ago. Watch that mark to see if gold can get past on the way to $1,300, the next resistance after.
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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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