A couple days ago I said that we have one more dip lower in gold this week and we got it today with gold down over $10 at one point. We should bottom tomorrow at around $1,245 area and then start the march to over $1,300; finally.
If you have not “bought the dip,” then this is the time to do so for awhile.
Silver has been more resilient than gold but today also got caught up in the selling.
What was the culprit for the decline in precious metals? The dollar took off higher.
Don’t worry though. This is just a technical bounce in the dollar and we will resume heading lower soon enough. This will be bullish for gold.
We do have the Fed minutes tomorrow and it seems like this might be a sell the news event as the S&P hits 2400, a new high and milestone. CNBC commentators liked it. It won’t last too long and we’ll see if tomorrow is a “sell the news” event for the markets as the Fed minutes are released in the afternoon.
From the Trading Desk
Two weeks ago market participants were convinced that gold would sink down to the $1,200 handle. That sentiment has quickly shifted with the euro marching higher and with headlines including a possible impeachment of President Trump, another North Korean ballistic missile test over the weekend, and an ISIS terrorist incident at a concert in London last night. Gold is now in a higher range yet again with the 200 day moving average providing support on dips and a triple top at $1,264 acting as resistance. After three weeks of trading lower, silver has recovered from its recent lows above $16 and is currently holding above the $17 handle. CFTC data shows that over 235 million ounces in Comex net length has been cut in the last month. As of last week, speculative silver shorts were at 413 million ounces, the highest level this year. With so much speculative short positioning on the Comex right now, silver could be getting ready for a jump higher here in the near term.
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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