Gold moved up through the morning along with silver and then slowly fell the rest of the day. Gold is down just over $3 in Asian trading and silver back under $17.
We may still get a move higher in gold and silver. The dollar is just over 97 on the index and acting a little weak. CNBC even had a bullish gold article today called “Gold is beating stocks this year; here’s why.” They talk about how higher rates may not be good for gold. I am on the record saying it doesn’t matter in the long run, but rates moving higher could give the “perception” that gold is not the place to be. But just look to the dollar and the data and trade accordingly. I don’t really care what CNBC says as they are almost always one sided against gold. They will look for any excuse to say gold may go down. But they do interview someone in the article who says gold is going up because of recent dollar weakness. I’m good with that.
The dollar has been the key of movement although some will say the dollar doesn’t matter. I look at it and other indicators. It’s not out of line to see the relationship for the short term. The data for unemployment was terrible and maybe it put some doubt into the Fed’s next move of raising rates.
The Fed’s Dudley spoke today and said that recent U.S. weakness has made the rate-hike timing unclear.
The stock market shook off the negative data and had another nice day. Oil did ok today too along with energy. Maybe we get a nice bounce in commodities for a bit, but alas, it won’t last. The dollar will be over 100 on the Index soon enough. For now, enjoy the bull ride gold bugs! I will! I would be long until at least Wednesday when the Fed minutes are released. I wouldn’t want to be long going into the time of the release however. Why gamble? Also, despite Dudley’s comments today, the data from the meeting is old news, so I don’t expect a big surprise. Yet the market may still be volatile as market makers like to push people out of their longs or shorts. That’s what they do!
Fed member Kocherlakota speaks tomorrow morning and we have JOLTs Job Openings data. Not much else to move gold lower, so I will stick with higher at the moment.
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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