From the Trading Desk
Gold looked like it was about to break below double bottom support at $1,240 overnight and then terrorist attacks in Belgium reversed its course. ISIS has claimed responsibility for explosions that killed 34 civilians in Belgium, 14 people at the check-in desks at Brussels airport and 20 bystanders at a Metro station near the European Union headquarters in central Brussels. The terrorist assaults came a day after the Belgian Prime Minister warned of revenge strikes for the arrest of suspected Paris-attacker Salah Abdeslam.
Within an hour of the news of the Belgian attacks, gold had already jumped up $15 on the back of safe-haven bids. Selling finally emerged at $1,260 and gold trended lower for the remainder of the trading session though. Silver has had a surprisingly dull day and tested, yet failed to close above, psychological resistance at $16 for the third day in a row. This is clearly near term resistance while the 50 day moving average at just under $15 is strong support.
Gold is presently at $1,248.60 and the range to watch is $1,242.90 and $1,260.80 for next direction. The dollar did act as the safe haven asset moving up .28% to 95.67 and finding it hard to break down. I am overall dollar bullish as most readers know and I think this will put pressure on gold eventually, especially as we move up to the 100 level again.
The stock market showed complete resistance to any negative news moving up the entire day with futures ending the day at 2043. By the end of the month we should start seeing a breakdown in this bull market the last 6 weeks or so and the question will become; how severe will it be?
We may just be close to what I am predicting in my next book which is why I am taking the time now to finish the last pieces to the puzzle before releasing.
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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