From the Trading Desk
Just as the market was about to close this past Friday, news broke out of a military coup in Turkey. Gold immediately rallied $15 as geopolitical concerns over the NATO-member attracted bids to the safe haven allure of the yellow metal. It became apparent fairly quickly over the weekend that the coup had failed though and the gold market opened on Sunday afternoon $6 lower than where it closed on Friday. With US equities still showing strength and the coup in the rearview mirror, it has been a lackluster week thus far for gold and silver. They have trended quietly lower with gold finding support in the low $1,320s while silver continues to consolidate around the $20 handle. CFTC data at the end of last week showed that the gold net position fell by nearly 1.5 million ounces, the first reduction in positioning since the end of May. The gold ETFs also shed about 125,000 toz as the risk-on sentiment in other markets took money away from the precious metals.
For those that are not aware I wrote an article today that you can view at Seeking Alpha.
Gold Miners Decline Coming And Caution On Buying Silver Coins
http://seekingalpha.com/article/3989504-gold-miners-decline-coming-caution-buying-silver-coins
Received this note from a client today. Thought it was good food for thought to share. It fits right in with my weaker Euro and stronger dollar scenario.
Doug, appreciate your point of view and read you everyday. the refugee debacle increasing the terror attacks and the widespread unreported in the media sex attacks in Europe spell doom for the EU.
LePen will win in May and France will leave……Merkel will be turned out and her legacy ruined.
the EU breakup will start the sovereign debt crisis as spain, Portugal and Italy default…..thats 3TRIL$.
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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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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.