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.
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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