The dollar fell overnight and gold gapped up 11 early then moved up 6 more before the dollar began climbing. It still finished a nice day higher and could be signifying a short term reversal.
Even before today’s smack down of the DOW where at one point we were down over 420 points, I had been calling for a lower market and UVXY to go above 30 when it was trading in the 25-26 range. We hit that mark and then some today reaching a high of 34.83 in UVXY. I had said to take profit in the 34.50 range and UVXY fell to around 32 by the end of the day.
With this weakness in the markets gold was the safe haven many turned to. But the mining stocks did give up later in the day and we managed to ride JDST and DUST for some good trades.
Despite all this up and downness of gold and silver I have to lean a bit bullish now and we’ll have to see if there is some weakness left in the dollar. Once again we did not crash through $1,050 and if you play that game of trying and trying and failing you have to take it as bullish, especially with a nice move up today.
We’ll see what tomorrow brings, especially in light of China market closing early yesterday which they did last year too and things began to unravel in the market. Tough call till we see how this move pans out, but we did make a good trade in YANG today, a short China play.
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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