Friday in light trading we had a nice smackdown in gold but it is staying above the $1,050 resistance at present. In early morning trading in Asia it is flat at $1,058. Silver is staying above the $14 resistance and has been resilient in doing so, but still could break down as it is presently just 5 cents above that level.
But it is the dollar that we need to keep an eye on at present. Are we at resistance or about to break higher? This should give us the best insight possible for where gold will go next. So far, it is leaning towards moving higher towards that 120 market if I am reading things correctly. It also fits in with my deflationary scenario I wrote about recently in a Seeking Alpha article that will be released on the blog here tomorrow.
Deflation Will Drive The Price Of Gold Lower
Janet Yellen speaks on Capitol Hill on Thursday. I want to see specifically if she comes off as weak with her conviction on where interest rates should go next. All eyes on the Fed, not the data. What they say matters to the markets and gold, not reality.
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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
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