Gold and silver couldn’t break out today and both finished slightly down for the day. All the mining ETFs took a hit and JDST hit a higher high bounce off the mid $9 range to close at $11.05. We’re in no mans land right now with the metals and they are difficult to play one way or the other but the weekly arrows are still green which has me leaning slightly long. My take on direction is lower lows still coming this year which I will be writing about in my next blog Predictions for 2015 article. Look for higher highs in the miners or JDST to go long the short term trend.
The dollar closed higher and is presently at 92.33 as the Euro slides. The 10 year treasury yield is sitting at 1.95%, playing catch up with the low rates in the rest of the civilized world. Deflation is everywhere!
I said in yesterday’s Current Thoughts that TNA should now test the 80 mark and TNA was up 3.75 again today closing at $78.75 with a high of $79.05. If it breaks 80 tomorrow, next up is the $86.68 52 week high. The DOW was up over 300 points.
UGAZ broke to a higher high today closing at 3.98. The Natural Gas report came out with another negative number but unlike past weeks, UGAZ, after an initial move down to test the 52 week low, rebounded 38 cents higher. If we move past $4.01 tomorrow, then it is in play for a long or buy the dip if it gaps up since after hours UGAZ was at 4.07. Keep your stop at $3.60. The trend is not your friend just yet with Natural Gas.
Oil got a little bounce today, but is up against resistance at $50. UWTI came close to its 52 week low and rebounded and ended up 2.82% to close at 3.64. Look for a long trade if it moves past 3.67 or buy the dip in the morning if oil is higher since after hours UWTI was at 3.70. The trend is not your friend yet with oil either.
RUSL took off higher today moving up another 20%. Most of the move was pre-market though. It should find resistance around $24 if it gets that far.
From the Trading Desk
As go the USD and equities, the opposite go the precious metals. The Dow Jones held its 100 day moving average perfectly two days ago and it hasn’t looked back since. Positive US data yesterday has allowed the Dow to extend gains with it up over 315 points in today’s session thus far. Gold was essentially stopped in its tracks on Tuesday at $1,220 as sellers emerged around a seven point trendline stemming back from October of 2012. Gold has gradually traded lower over the past two days with investors reallocating funds into equities while simultaneously liquidating the yellow metal. Crude oil’s steady march lower and entrenchment below $50 is also not doing many favors for gold.
Coin and fabricated precious metals demand remains subdued in North American and Europe but Chinese demand has picked up in 2015. The Shanghai Gold Exchange arbitrage over London is trading at a $4/oz premium. Gold still seems like it wants to test lower and support is coming in at $1,200 for the time being. Silver is rolling over along with gold but should find bids ahead of its 50 day moving average at $16.13.
From Dennis Gartman on Gold
Tomorrow’s blog I will be writing my 2015 Predictions for Gold and Silver article. It will automatically go out Saturday to those who have signed up for the Newsletter on the right side of our home page which can be found here: https://buygoldandsilversafely.com
1-8-15 GLD Chart
1-8-15 SLV Chart
1-8-15 GDX Chart
1-8-15 GDXJ Chart
1-8-15 JNUG Chart
1-8-15 NUGT Chart
1-8-15 JDST Chart
1-8-15 DGAZ Chart
1-8-15 UGAZ Chart
1-8-15 TZA Chart
1-8-15 USO Chart
1-8-15 UWTI Chart
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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
Disclosure:
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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.