In my last report I mentioned that we would have one more trip lower in gold, and I am still in that camp. I will go out on a limb and say that this is the last trip lower we will have and could take us to the end of year. 2018 will start off with a bang for gold. There is however a chance we may begin the climb sooner than that though. When you are buying the dip as big as this one has been, it really doesn’t matter too much that you catch the exact bottom.
The potential for seeing the low on gold is when you once again see the USD/JPY over 114 (it is 112.90 now) and dollar over 94 (it is 93.03 now).
Gold mining stocks probably have one more test of the lows too.
Ideall what marks a bottom in metals and miners is sentiment down to below 10. While there are other things that can correspond with sentiment in the teens I look at, what we want to see is a day when things go south really fast in a V shape pattern and buy that bottom of the V. I’ll know it when I see it.
Related posts
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.