With the dollar up overnight we had to do a quick reversal on our gold trades in the trading room at Seeking Alpha and we caught a good run in JDST and DUST. Gold fell below the $1,100 resistance and the technical marke of $1,095.80 but just by $1. Silver fell below its resistance at $14. The dollar moved higher and the metals are moving inverse of each other again.
I am disappointed in this move in gold. The dollar I thought would fall further than what it did giving the Euro and Yen a breather to go higher but it just didn’t happen. It may still but it looks like we are still in that trading range with gold and silver. The dollar is still key to everything.
Notice also the VIX jumped higher today and then crashed. We follow UVXY in the trading room and rode it to the 48 range and then sold but it proceeded to fall to the 40 range after that. What a turn around. I expect with this decline in fear that we might get a further bounce in the DOW which I was expecting today to occur. We moved up 100, down 100 and then back up 100 in a crazy day of trading before settling about 50 points higher on the day.
I think China finally turns itself around overnight and we continue higher. Gold may feel some further pressure if that’s the case. Again, let the dollar show you the way.
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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