I wrote an article yesterday that outlined that if the USD/JPY was going to move over 111.50, gold would have some issues still and it did. Not only did we have that occur, but overnight we had a flash crash in gold when someone sold a bunch of it at once driving the price down $20 instantly in a market that was thinly traded? Who does this? How is this good for the seller? Why was it done? We can’t answer that, but the resistance at $1,260 was there. Gold did recover some but it was not good for this day and age to allow something like that to occur when there is no market unless it is a Central Bank trying to keep prices down. No investor with any intelligence would do such a thing.
We might just have to wait a bit longer for that run to $1,300/$1,400 but it is coming. The bottoming out process is not easy to trade but the dollar was also up today putting even more pressure on gold.
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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
Disclosure:
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.