Cubs lost again and gold fell again. I don’t give much hope for either of their success anytime soon, but maybe the Cubs win and gold bounces for a day. No, I am not correlating the two.
We did see the dollar get close to that magic 95 number where I wouldn’t want to see it move over it as I think it will take off straight to over 100 and new highs should this occur.
I said I was also leaning bullish the markets and if they picked up any steam this would take people out of the gold trade and back into the stock market. The gold mining stocks got hit hard today as gold faltered and I think the mining stocks will lead gold lower, even if we get a pop up in the overall stock market.
I can’t tell you for certain we will fall below $1,000 an ounce on this next dip, but I have been calling it for quite some time and telling investors in gold to be cautious for quite some time. I do recommend dollar cost averaging into a position and I hope your last purchase is at the very bottom on a V shaped dip.
I’ll repeat, the dollar is key and so far we have seen a very easy inverse relationship to follow what gold will do. It won’t always be easy but for now, it works quite well. If I am right about German, Japan and the rest, the dollar should move much higher and this should push gold much lower.
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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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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.
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