Gold and silver have been in a bottoming process of lat, only delayed by two things; a higher USD/JPY and a thin trading day Monday followed by the holiday and overnight low. But today after there FOMC minutes, we finally had a move in metals and mining stocks alike. The only laggard is silver. I think silver though will lead gold higher on this next leg up.
I am expecting no less than a $100 move on this round in metals and more than likely a move to over $1,400. From there we will have to get more cautious on when the next downturn comes and how severe it might be.
I want to point out that the USD/JPY inverse relationship has been much better of a correlation than gold and the dollar index of late too. This means that the dollar could actually rise with gold for a bit.
Lot’s of data coming out tomorrow like ADP Payroll and Jobs data, and this can dictate short term directions. But we are only talking micro moves.
It’s just a waiting game right now for this bottom to take place. Be patient. And it may have just happened.
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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