In yesterday’s Current Thoughts I posed the question “Is there one more leg down in gold.” we got that today and now we have two issues on our hand.
The first issue is a bad one. If the Unemployment data comes in good tomorrow, it should push metals even lower.
The second issues is a good one. The dollar broke to a lower low today, but it didn’t get gold to rise but to $1,230 when it broke 98.77 and then when it broke even lower gold failed to get past that $1,230 mark.
Here is how gold closed.
I do think we are in a bottoming process either way and if the dollar continues lower on Friday or Monday, I think gold will have bottomed. It is possible it bottomed today, but we’ll wait for the data early tomorrow for confirmation if we have a bit lower to fall first before the rebound. Either way, we should be getting close to a bottom. Sales were up today and I use that as a good sign.
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About Doug EberhardtDoug 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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