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.
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
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.