Gold continued lower today and then stalled out. I made a call in the trading room at Seeking Alpha to switch to JNUG/NUGT and we caught some of that nice ride up and went home flat for the day. We are still in that trading range for the metals and the dollar still gave us the inverse direction today telling us where the metals would go.
Beginning of the day gold was down double digits with the dollar over 99. Then we had the reversal in gold gaining $5 back and the dollar moving below 99. That’s it in a nutshell.
The markets moved up, then down then back up in a repeat of yesterday’s performance. After last weeks beat down this week we are getting a chance to catch our breath. So far each rally has been sold but I have a feeling tomorrow we finally get a good day higher. We’re still due for it. If for some reason we have another day of selling any strength, investors are going to start throwing in the towel. They have been fooled before and don’t want to lose what they made.
SVXY gave us a clue to go long the market when the DOW was still negative today. It was sitting there with no fear and the market responded as buyers came in.
Gold still under $1,100 and weak. Silver still under $14 and weak. Watch the dollar tomorrow for clues.
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About Doug EberhardtDoug 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
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.