We have seen the dollar move higher for awhile off the May/June lows and the more it keeps pushing higher, the more it is setting up for another decline. I am thinking that is coming soon, but today we got some good manufacturing data that caused it to move higher. This after overnight data from Japan and Germany for manufacturing pushed their currencies higher and got gold to go red for a bit.
Any positive news coming out of manufacturing I think is short lived and we’ll see what consumer confidence comes in at tomorrow for the U.S. and what the dollar will do after with gold doing the inverse again.
Today we did have the industrial metals all stay green all day, despite the dollar being up, so that was an interesting phenomenon but nothing to be concerned with. Metals may still be weak, but we are setting up for a bounce soon enough.
More and more as data comes in, I think we head lower in the markets just because things seem weak overall to me. We’re seeing it in tech related stocks beginning today and it could spread, especially if the consumer loses some confidence.
With the technology outages for many websites last Friday, I expected a bit more panic in the markets. I was surprised to see how resilient they were and the continuation today when it was shown the markets handled it well. This won’t stop a bear market from taking hold though.
Doug 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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