Today we saw gold shoot higher with a stronger dollar. There really is only one reason for today’s price action and it was fund managers buying to show their investors they had the hottest asset; gold, the last month in their portfolio. We should see a selloff soon. There is no fundamental reason gold is higher but the VIX did shoot up a little bit today as the market fell 100 points on lousy data.
Overnight we’ll have China PMI Manufacturing to deal with and I don’t expect it to be good. A little more higher in gold a possibility.
Silver couldn’t even muster a move over $16, and definitely acting like the industrial metal. If Chinese data doesn’t come in good, silver may lead gold lower.
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.