Gold and silver started the day breaking lower and especially the miners, and once the Fed minutes were released, shot up higher. Metals are going to benefit from a possible weaker dollar now so we’ll let that scenario play out thanks to the Fed and I think Donald Trump putting some pressure on them. Why else would they mention a weaker dollar? Yellen wants to keep her job!
Silver has been a little more resilient than gold. It isn’t falling hard on any of this dollar strength we have had and it leads me to believe that both gold and silver could indeed take off for a bit here, barring anymore issues out of Europe.
In fact, during the day today the dollar got hit with a move by one of the French Presidential candidates to back someone other than the leader LePen who isn’t a fan of being part of the European Union. So many issues in Europe right now but we’ll take any strength the Euro can find and stay long gold as the dollar heads a little lower. Need to get dollar under 101 first, then under 100 and stay there for a potential run to $1,300.
After $1,300 we have to see where this potential deflationary credit contraction takes us. I see in the not too distant future a bullish dollar returning so it’s all about timing.
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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