From the Trading Desk
US equities started off hot today but quickly reversed course after the release of US economic data and commentary from a Federal Reserve official. Consumer prices jumped the most in more than three years as CPI m/m came in at .40% versus economists’ estimates of .30%. The rise in consumer prices, an indication of inflation picking up towards the Fed’s eventual goal of 2%, was largely attributed to gasoline prices surging the most in four years. Atlanta Fed President Dennis Lockhart remarked that June “certainly could be a meeting at which action could be taken” in regards to a potential hike. The Dow, already on tenuous footing, was unable to recover from jitters of a looming rate hike and closed near the lows of the day. Gold traded choppily but ultimately finished in positive territory. The upward trendline dating back to the beginning of the year still remains intact and support is coming in at $1,265. More significant support is below there at the 50 day moving average of $1,250.
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.