From the trade desk:
It’s been basically a straight trajectory south for the precious metals since the end of October but today finally brought about some positive price action for them. Gold has rebounded from six year lows, silver has managed to hold above $14, platinum has recovered from seven year lows, and palladium is consolidating below $550. Yesterday’s Federal Reserve minutes still target December as a likely time to raise US interest rates after seven years near zero. They remarked that the process will be a “slow and steady” one though and this language weighed on the USD. Gold shorts interpreted the Fed rhetoric and USD price action as reason enough to cover positions and gold moved up about 1% today.
Silver futures touched just below $14 yesterday but managed to find bids to lift it back up above this crucial support level. Besides being the low from this year, $14 is also the low dating all the way back to 2009. After falling more than 11% in less than a month, silver will look to consolidate above $14 before trying to make a push higher.
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.