From the Trading Desk
The euro rallied to its 200 day moving average at $1.103 yesterday, a level it hadn’t approached since early November, but it didn’t have enough steam to break through the technical barrier. It has since backed off this level and has retreated as market participants turn their attention to the expected Fed rate hike in the US next week. The precious metals are trading lethargically with gold stuck in an unimpressive $7 range today. It has spent this week in a tight $20 range. Sellers have emerged consistently above $1,080 while bids have lifted it back up any time it has broken below $1,070. The falling crude oil price will likely continue to weigh on the precious metals complex so the risk is weighted towards the downside in the near term. Should the $1,070 area decisively break in gold, next support is coming in at $1,050. Silver has steadily sold off over the past four trading days and is looking to attract bids at the $14 handle.
Keep an eye out tomorrow for US Retail Sales and PPI figures at 5:30 AM PST.
Today’s gold market stayed lower the entire day but never budged from a range as the dollar stayed higher all day. Gold will await the retail sales report tomorrow morning and we should have some movement coming.
Some of you wonder when the time should be to buy gold. Others are waiting for my all in call. One thing that is not easy to predict is where the next crisis will come from that would push investors to gold. But I am writing an entire book to bring awareness on where we are presently with the metals and what potential issues may arise that would cause you to go “all in” without me telling you to do so.
I just finished the section on the banking system here in the U.S. I started this section 18 months ago and hit a wall because it was so much information. I felt like I could write an entire book on the banking system alone. But I have cut that section down considerably so it can be and easy for most reading to comprehend. The truth is, most have no clue how our banking system really works or how the Fed works and we just trust the masters of money to be in our best interest and that Congress has our back should there be any problems. That’s what happened in 2009 right? And the Savings & Loan crisis? And the Asian financial crisis? Every crisis has been meet with a successful outcome without too many being hurt.
But what does the future hold? Are banks too big to fail? Is the Dodd Frank Wall Street Reform and Consumer Protection Act really capable of protecting you? Have you ever sat down and read about Dodd and Frank? (if not, read my first book Buy Gold and Silver Safely for some good analysis of these characters.
Banks are good at one thing and that is getting away with whatever they want to do with no concern for consequences of their actions (moral hazard) and only one goal; their lust for lucre. I’m not bringing up any conspiracy theory in the book or about banks. Anyone who has read my stuff knows that I document everything. What I will reveal is reason enough for you to own some physical gold. But I’ll let you read the book first and decide for yourself what makes the most sense.
The book Illusions of Wealth will be available on Amazon.com and you can sign up for announcement of its release here: https://illusionsofwealth.com
While banking is only one section of the book, the entire book will keep your attention from beginning to end on what I see, how I see it, and what you need to do in keeping your wealth from becoming an illusion.
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
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.