Based on DSI analysis there is a 60% chance gold will move higher right now and about a 35% chance silver will based on prior peaks before reversals in sentiment. In other words, silver may lead gold lower on a probability basis, but there still are North Korea issues looming over us.
We did move lower in metals today but silver didn’t fall too much. USD/JPY is key here and it as higher today and if over 109 again but fell short of breaking 109.40. You’ll recall yesterday I said it seemed to find support above 108.65 area. Will make a call either way at this point but see the 22 to 23 area as a buy zone for JNUG and the 13 to 14 area a buy for USLV. UGLD support is 11.80 to 12. NUGT 39 to 40. We can start with half share purchases and go full shares lower or higher. The move from high to low today was -8.16% for JNUG. While it did bounce at end of day a little, we did break yesterday’s low. In other words, at that point it was as if yesterday never happened. I prefer to get these shares lower and our key is USD/JPY. See above for sentiment data which is not very bullish for silver overall based on the last 11 tops it has had. Yes, we could still go higher with news or on its own, and I will make the call accordingly. Meanwhile, the phone is still not ringing here at Buy Gold and Silver Safely. That insight has to wear on the price a little. This is not the normal bull, even with North Korea news pushing it higher.
Meanwhile President Trump sided with Democrats on raising the debt ceiling today putting more pressure on metals temporarily.
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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