From the Trading Desk
In a unanimous vote, the Bank of England cut its benchmark interest rate for the first time in seven years to a record low of .25%. The revision in policy, which includes buying 60 billion pounds of government bonds over six months, occurs amidst officials slashing growth forecasts by the most ever and is an attempt to jump start an ailing post-Brexit economy. Gold and silver were sinking lower in the overnight session until the news came out on the Bank of England decision. It breathed immediate life into gold and silver and both recovered all of their sessions’ losses. England, once again (the first being Brexit), has caused market participants to flock to the safe haven appeal of the precious metals. Gold has failed for three days in a row at the triple top of $1,366 which remains the near term target. Silver sold off swiftly overnight down to just above $20 but its time there was short lived. Bids lifted it up quickly and $20.75 is the level to watch overhead.
The dollar did move higher again with some weakness coming out of Great Britain and the central bank lowering rates to an all-time low. No surprise there. Gold really didn’t do much but I expect some trouble still ahead as long as the dollar continues to shoot up higher to my 100 target and above. Given time it will.
I’m getting some good media attention internally for the book. I’ll let everyone know where they can tune in to see what I have to say when the time comes.
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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