From the Trading Desk
The hangover from last week’s Federal Open Market Committee meeting continues to afflict the precious metals. Gold has traded lower for four consecutive sessions now and is set to make its lowest close in over a month today. Recent equity and USD strength has contributed to traders and investors exiting from long precious metals positions. Gold is now well under all major moving averages and next major support is coming in at the psychological figure of $1,100. According to US Mint data, gold coin sales in October totaled 44,500 ounces, down 50% year on year for the same period. Silver coin sales over the last month totaled 3.8 million ounces, a drop of 35% year on year. Keep in mind that the silver figures don’t reveal the full story as the US Mint has been on allocation since June of this year. This means that authorized purchasers have been restricted each week to a finite number of coins even though market demand has clearly outstripped supply. While silver coin demand has remained robust over the past few months, silver exchange traded holdings are at their lowest level since July of 2013.
Dollar up, gold and silver down. It is what I have been expecting and today we saw gold and silver take it on the chin with gold down to $1,113.10 and presently $1,115 and silver hanging in there down 16 cents to $15.24.
The dollar is up 34 cents to 97.25.
Another taste of my ETF Research Trading Analysis
We entered TQQQ and are up 1.63
We entered UDOW and are up 1.25
Got 30 cents to 80 cents from SVXY.
Got 50 cents (ore more if aggressive) from GASL.
UGAZ down 8 cents on but it hasn’t triggered on the weekly. Still may run but will keep a stop.
One losing trade on DWTI.
Doug Eberhardt, Contributor
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.