I’ve been concentrating on the dollar of late as I am expecting a turnaround back up which will put more pressure on gold. Some are saying the Fed wants a weak dollar but the Fed can’t do anything about what money flows to the U.S. dollar as a safe haven while all else around cracks up. We got some good news from China on rumors of more stimulus (that’s how markets trade these days, not on substance) which gave commodities another boost and the dollar was down slightly today. But gold miners put in a key reversal closing lower as gold closed higher.
Was today just a pullback in gold as we head to $1,200 – $1,220 range or is gold done for? I don’t know and frankly I don’t really care. Nothing is going to alter my view of lower lows ahead. For me to be this bold about what I think is coming means I have to show data that proves my observations and I do that over and over on this site. If you believe in the “Gold is bottoming” articles, then buy gold and gold miners. If you think my data makes sense, then you might want to wait.
My key again is looking at the Euro and Yen as my primary indicators versus the dollar which I see moving higher, not because of great economic data, but because it is perceived as the best of a rotting bunch of currencies whose governments (spending) and central banks (allowing the spending unabated) will drive them into the ground before cutting spending and letting markets freely trade.
Seriously, how do the problems in Greece, which had CNBC commentators talking about it every day all of a sudden disappear? Can anyone not see what’s coming next for Germany? and the rest of Europe should Germany crack?
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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