Gold did break to a lower low today. I had warned before the markets opened in our Trading Room over at Seeking Alpha that we should look down, not up and we locked in our profits in JNUG and NUGT. The dollar shot up and as I wrote yesterday we are looking at the Draghi ECB decision tomorrow to be dollar bullish and today I think we bought the rumor and tomorrow possibly sell the news as the ECB does more QE.
Janet Yellen came out and said she is not yet going to 100% raise rates this month, waiting on more data to come forward. The markets didn’t like that at all and the DOW lost triple digits. Once again the market trades on the Fed, and not on data or valuations. This is not your father’s market.
Tomorrow will be a prelude to whether the dollar can keep moving forward to the 120 mark I think it can obtain. They Euro is on its way to parity and the Yen is heading south too. This is the trend and unfortunately it continues to put pressure on gold.
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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