Current thoughts 12/6/16

We have some concern with gold all of a sudden as the dollar has bounced off that 100 mark and moved higher and is likely to test more highs as the stock market keeps hitting higher highs into the Fed meeting next week. Then I imagine it will be “sell the news” and the market will probably first move higher and gold lower immediately and from there some trades long be made in gold and short the overall market.

Remember, we have been here before. Last year the Fed was set to raise rates on bad data and this year though they have better data, but I think their rhetoric to talk about raising rates 3 times in 2017 (they said they would raise rates 3 times in 2016 of which I called their bluff just after they raised last December) and tone it down to language more like “we’ll wait and see if the economy continues to shine” language. This may not be good enough for the market, but if they speak of 2 or 3 rate increases in 2017, then I know they are dumber than dirt. But the market does still believe the Fed which if this kind of rhetoric does occur, then expect a move higher in markets and a potential immediate washout in gold.


Go To Buy Gold And Silver Safely Store
About Doug Eberhardt

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


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.