We did get one last push higher for gold after the Fed announcement today where they decided not to raise interest rates. The dollar took the main brunt of the news falling below 94. I had said to keep an eye on the dollar falling below 94 as a reason to stay bullish gold and we now have that target taken out.
Both gold and silver are now poised for a trip higher where gold can see if once again it can push through the $1,266 close and $1,280 potential high on it’s way to $1,300. Silver is trying to hit the top of its range at $18. I am going to find it difficult to say silver can go much higher than that target while gold can push above $1,300 for a possible blow off top.
Funny how we haven’t heard anything negative come out of Europe or even Japan of late until tonight. They can’t be liking their stronger currencies and I think there will be some sabre rattling by Mario Draghi and Shinzo Abe as I have been saying, but turns out Japan threw me for a loop and didn’t do any stimulus. Futures are down 14 at present to 2076 and oil is down 30 cents under 45 again.
Oil took off on the weaker dollar earlier in the day despite today’s storage build. Oils short term run could be coming to an end soon too.
We know this is a commodity bull run with a dollar decline. What we don’t know is when Europe and Japan become the main story again. Believe me when I say that they will. Japan can’t be liking the Nikkei down 624 points or 3.61% right now to 16,666.05. And you can throw China into the mix too.
Should be an interesting rest of the week in the markets. Volatility I think is coming back. Watch the VIX for clues, and of course the dollar.
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About Doug EberhardtDoug 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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