The Fed gave gold bulls some good news yesterday but was it enough to get gold over the hump here? It looks to me like we are a little delayed in that run to $1,300 but I for one don’t mind waiting another week. It gives buyers of gold and silver the opportunity to buy lower.
While gold was somewhat flat today, tomorrow it will trade with whatever the GDP data comes out to be. If negative, gold should move higher. If positive, gold should move lower.
Overall gold is still going to follow inversely what the dollar does and so that is your key to watch in the morning.
From the after hours high yesterday,, where gold took off a little higher, to today, gold was falling as the dollar spent the day moving higher most of the day. Presently the dollar is sitting at 97.18, down just a little from my report 2 days ago. The dollar has to take out 96.82 for the bulls to have some fun.
GDP will set the tone. If for any reason GDP is positive, our delay in the gold run should be another week. But retail has seen a tough time so it’s hard to imagine that. And for that matter the stock markets reaction to it.
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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