Looks like the mining stocks want to bounce here, with gold and silver bouncing off their most recent lows. I noted in last nights Current Thoughts that GDX had moved up a bit. If mining stocks lead gold, then this was a signal of a short term bottom. The overall stock market took a swing higher at the same time.
This seems to be a strong reversal, but remember what I said about volatility the week of the Fed meeting. Today is the first day of the meeting with the results being announced tomorrow. This type of price action is to be expected. The real question is, what will the Fed say? In my last update yesterday, I said I don’t think they will take any action. This means to me that the metals may bounce up and down but continue their downward move to lower lows. Any surprise I might change my mind, but I don’t foresee anything but the Fed not doing much to stir the pot.
Meanwhile, gold and silver can move up and down between now and tomorrow.
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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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