Gold didn’t like the data on existing home sales surging to the highest since September 2013.
Speaking of data, I see that if you go to this link on CNBC that they haven’t written anything on the economy for the last 5 days until Steve Liesman video today showing how the 1st quarter GDP data the last 30 years is mostly always negative compared to the other quarters.
I suppose this is CNBC’s way of saying the rest of the year will be great. But they always look at the economy through rose colored glasses. That is, until their commentators are stolen by Fox Business Channel. If you do watch CNBC, only listen to Rick Santelli. He’s the only one I pay attention to.
The prices to look for are as follows for gold;
Go short if gold falls below $1,178.65 and go long if it goes above $1,208.35.
But many traders like to play the game of buying a short term trend, so since we are presently at $1,187 I would use a break of $1,190 to go long. I truthfully don’t have a problem of this as May is around the corner and is historically a good month for gold (better than 50% odds) and it seems it is due for a bounce from all I read.
Under $1,178.65 and I change my mind. I do realize that market makers know these figures too, so fakeouts always occur. It’s their job to fake investors out of their money. To be good at the short term game, you have to think like them and most importantly KEEP A STOP!
I am still in the camp of lower lows for gold and silver. We are only $29 as I type from the lower low in gold. I really don’t want to see it taken out just yet. Perhaps a summer rally will get more bulls trapped before the final smack down.
I do not that interest rates have ticked up a bit and the dollar is above 98, mostly because of one piece of data today. Watch the initial jobless claims numbers tomorrow at 8:30EST for an indication of direction, along with the dollar. We also have manufacturing PMI at 9:45 and new home sales at 10:00. Should make for an interesting morning.
Not much data coming Friday, so the main action in the markets will be tomorrow.
Recently there was a highway heist where $4.9 million in gold bars were stolen from a truck traveling from Miami to Boston. Speculation is that it was an inside job, which I would have to agree with. The interesting thing in this case is one gold bar worth approximately $500,000 was found in Florida. Not sure how a bar gets separated like that, or who would try and sell it to someone when the bars are clearly stamped with a serial number. I am sure the thieves are not smart enough to know how to handle the disposition of their stolen goods, but we won’t be buying any gold bars of that size here and will report anyone who tries to sell us any. Of course the gold is all insured through the carrier. If you ever ship your gold to be sold, always insure it for full value.
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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