I kept an eye on overnight action in Asia on Sunday and gold and silver moved higher with the dollar down slightly into European trading. For Monday July 4th, gold and silver opened higher with the dollar down but now there seems to be a reversal in both.
Gold did get to the $1,350 level but could not break the $1,362 price it got up to the Friday morning hours of the surprise Brexit vote. The $1,338 level you don’t want to see breached if you are a bull, which was Friday’s close and if you are a bear, $1,352 and then $1,362. My call for a $1,400 top from April is still in place for gold. I would however like to see the dollar lower but it seems to be buoyed ever since the Brexit vote, between 95.50 and 96.50. I still think the dollar will be key moving forward to what gold does, but I need to see more evidence out of China, Japan and Europe of a weakening economy and data as well as intervention by central bankers and leaders into the currency, weakening them with more unprecedented behavior that will be dollar bullish.
Silver has already fallen to its Friday high and seems to be breaking down now after hitting around 20.62. Presently trading at 19.79 and it doesn’t seem like when it opens in the U.S. after a long weekend there will be any short covering, at least as of now. The levels on the chart below are the ones to watch right now.
The chart below I hope to continue to provide us cue’s as to what is to come for gold. It hasn’t hurt projections so far and I think we’ll see some surprises coming soon enough. I have never seen so many bullish gold articles, but this writer remains calm and looks at the data. Treasuries are at record lows. Dollar is not crashing. Volatility is at record lows. Stock market went over 18,000 again last week.
I am however looking for a tough stock market overall in July and I would be lightening up positions in stocks, and the miners. If you are locking in profit near the current highs, a short little boost higher in stocks isn’t important to me if I can just lock in profit and sit on cash for the next good setup. At a minimum, a hedge might be appropriate.
Book News
I sent the book off to Amazon.com, finally. They are supposed to get back to me on it within 24 hours and I get to order my first proof copy for review. Should be about a week and I will have 3 versions of the book available on Amazon.com; A color copy soft cover (recommended because of the clarity of charts and graphs), black and white soft cover, and Kindle version.
If you have not yet done so, please sign up for the announcement of its release by going to https://illusionsofwealth.com
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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
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.