Today was an interesting spike up and reversal. Like to see that kind of price action if we are indeed ready to reverse. In last nights Current Thoughts I wrote that I felt the overall market was topping too with the S&P 500 hitting 2100. The S&P 500 closed down 10.92 to 2091.48.
Gold shot up to $1,272 in early trading and after the market opened at the NYSE, fell sharlly and was flat the rest of the day trading at 1250.90, nearly $22 off its high. Silver was trading up 50 cents early on too hitting $17.65 before falling 60 cents to $17.05, even dipping below $17 again.
If yesterday I was a broken record on the dollar then today I am simply the flip side of that 45 for you old timers. The dollar move down pushed gold up and the dollar move up pushed gold down. You can see it all in this one dollar chart.
This is the kind of spike I like to see on a reversal pattern. We very well may have turned the corner on gold lower, as well as silver. The reason I speculate this is 1. the spike and 2. we did not close lower higher than the $1,266 level from 45 days ago, even though we spiked over it today to possibly trap last minute longs. Richard Russell always taught me that closing price is what’s important for tracking.
We’ll see what tomorrow brings.
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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