Crazy day in the markets today as oil was the story early on. The DOW was down then up big then down big and settled lower with oil.
What I noticed was the dollar was getting hammered yet gold didn’t take off like I thought it would. I made note of this in the Trading Room over at Seeking Alpha and we jumped long JNUG and NUGT for a trade. Gold should turn around and move higher now with this move down in the dollar.
The $1,084.94 resistance level goes back to July and August of this year and the level we just hit last week on 12/4.
With the price of oil going lower, the wholesale inventories coming in lower than expected today, all other commodities falling, how can one not see the slowdown and the deflationary effects? This reprieve of a dollar fall should be welcomed with open arms but oil and natural gas, as well as gold still weak.
Can we expect the Fed to raise rates next week if the markets are so weak? In reality, Janet Yellen has no right to raise rates based on all the data that I see, and believe me in writing my book Illusions of Wealth which I should have to the editor by next Friday, the data I read says WATCH OUT! If you haven’t signed up for the book yet, and sorry for the continued plug, but I have a ton of people who have not signed up for it and don’t read my thoughts every day, you can sign up for the announcement here: https://illusionsofwealth.com
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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