Current thoughts 9/13/16

From the Trading Desk

The markets were a sea of red today with the Dow Jones falling over 250 points and closing below its 100 day moving average for the first time since late June.  A slump in crude oil and energy equities led the broader stock market and commodities complex lower.  Uncertainty concerning next week’s Federal Reserve monetary policy decision appears to be well-ingrained in the market’s mentality right now and participants are becoming increasingly risk averse.  Gold has traded lower for five consecutive sessions and next major support is coming in at $1,300, the convergence of the 100 day moving average, psychological support, and a long term trendline dating back to December of 2015.

I know I sound like a broken record, but gold started the day up and the dollar took over from there moving higher and gold lower. The miners got hammered again. This is something I warned about here: Gold Miners Decline Coming And Caution On Buying Silver Coins

What got the dollar higher today?  The words of a BOJ (Bank of Japan) official set it off. See the story here:

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About Doug Eberhardt

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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