From the Trade Desk
With the US Thanksgiving holiday just a few days away, the precious metals markets are ticking along quietly and consolidating in their new lower ranges. Even Turkey (the country, not the animal you’ll be eating on Thursday) shooting down a Russian fighter jet near the Syrian border couldn’t excite the precious metals at all today. After spending the better of November in a steady downtrend, gold has used the last week building a base above $1,060. Bids have materialized ahead of this level while selling has emerged in the low $1,180s this week. Silver has also finally stabilized and continues to find buyers as it approaches $14.
Gold rallied a bit higher today, possibly because of the shooting down of a Russian jet by Turkey. Oil was higher as well and the metal miners also took a trip higher. Perhaps they were ready to bounce anyway because the dollar fell after almost hitting 100 in the last session of trading where I had called for some potential resistance.
I do see the dollar moving higher and gold lower, as most of you know. I don’t think it is far fetched at all to think this way especially as we move closer to year end where tax loss selling in GLD and SLV and other gold investments come into play. The dollar is at 99.59 and still doing ok. Gold was up today double digits early and finished up around $8. Silver finished up 9 cents after falling most of the afternoon. Silver fits in with the deflationary story better than gold.
We and our suppliers are still like the Maytag repairman waiting for the phone to ring and I don’t see that phone ringing much till next year and I say that with 5 weeks left in the year. Perhaps though, when my new book Illusions of Wealth comes out, we’ll see a wave of buying in the metals. I do think it to be a game changer. We will announce the presale of the book if all goes well in December. In the meantime you can sign up for the notification of that books release by going here; https://illusionsofwealth.com
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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.