This will be an interesting week for gold. We should get a bounce up with the weak job numbers on Friday. As usual with Fed meeting minutes released, expect some volatility. I posted last week what many of the Fed members think in that we should get higher rates in the near future. But I’ve also wrote about the data not backing this stance up. While these notes will talk about what they said a few weeks ago, this doesn’t necessarily mean that the Fed will raise rates come next meeting. I can’t say they’re real happy about the data.
I have not posted this on the regular blog yet, but I wrote an article for Seeking Alpha that was published over the weekend. It has received over 300 replies so far and close to 10,000 views. The reason it has probably received so many replies is the title of it; “Don’t Buy Gold Now, Wait Until It’s Under $1,000” You can find it by clicking the link below.
I will post it to the site later.
In this article I give more of the reasons why gold may fall a bit more before taking off. I risk my credibility when I do this, and obviously I don’t make any money when I tell investors to wait in purchasing gold, but I simply call it like I see it.
There are a couple lists in the article that are worth looking at;
10 Reasons Why Gold Will Rise
These reasons don’t make up my list, but are from the ones trying to sell you gold for whatever reason they can dig up.
10 Reasons Why Gold Has Fallen
These are from me. They explain partially why despite the data.
The data we all can see and it hasn’t been good. Yet the stock market is still hovering around 18,000 and poised to go higher once the selling in the first part of the week ends. Gold may pop higher with silver, but may be the end of the dead cat bounce by the time the minutes are released on Wednesday. We’ll also see what Fed member Dudley has to say twice before the Wed. release and Kocherflakota on Tuesday.
Other than that we get some manufacturing numbers on Monday and Jobless Claims on Thursday that can move the market.
You can see some consolidation in the price of gold in the following chart. We have to break out of this area and unfortunately I think we head closer to the next consolidation area after this small run up, rather than higher highs. This fits in with the article I wrote. I would love to write my “all in” article at the next consolidation area, between $850 and $1,000.
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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