We’ve had a nice smack down in gold and if you glance over at the USD/JPY chart, you’ll know why. But there was more to it than that. The stronger dollar was needed by the Fed and their fake talk of higher rates was needed to support the stronger dollar for the short term, as they couldn’t have everyone running out of treasuries. They still need to sell treasuries and sales were down is all. Now that the dollar has rebounded some, and gold has fallen, we can get gold running higher to 1400 again soon.
Watch for the USD/JPY to have topped out here at 113.25 yesterday and for the dollar to have topped out as well. (see charts)
Silver too got hit hard and should lead gold back up here.
GDP came in better than expected today, but the jobs data did not. The Fed was touting good jobs data, and a strong economy, but jobs aren’t especially strong per the latest data and the Fed has ignored completely the housing data which is disappointing big time. Why? Because they fake their comments to get the market to do what they want it to do to satisfy short term thinking. Bunch of crap and will come back to haunt them big time.
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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