The dollar couldn’t break through that 99.48 level and stay there today. It came close and we like that as gold bugs, but it may take a little bit longer to be convincingly lower.
Gold is also up against the $1,250 resistance but should push through it very soon. Silver a bit of a laggard but also ready for a move higher.
Many times you have heard me say the dollar inverse relationship to gold still matters. I show over and over how this is an important relationship to watch. $1,300 could be the next move for gold but the bad news is, look at that price of the dollar now and as low as we go, we will at some point in the not too distant future, whatever that is, be over 100 again in the dollar. Then over 120. This will hurt gold. I have written much about the deflationary credit contraction to come. No one really on Wall Street is talking about it. I don’t know why I can see things clearly that others can’t but remember, no one saw the 2009 crisis coming on Wall Street either but a handful of people. Most of that handful of people though always called for a crash and just got lucky. Many of those people have called for a crash ever since as the market moved on to new highs.
I try to set myself apart and give you reasoning, whether in articles or books I have written. I wouldn’t be where I am today and happy with what I say unless I did my own research and came to my own conclusions. Hopefully they benefit you.
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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