Gold had a nice move up today before the market even opened along with some bad trade data. Then the better than expected manufacturing data put a stop to any run it was having. The miners all ended up red after the news came out, but gold managed to stay green, as oil also rallied spurring talks of inflation.
The trade data is bad for GDP, so I don’t know why the manufacturing data would trump that. Most are simply waiting for the U.S. jobs data before deciding which way the gold market will move over the short term. I still lean up, especially after today’s trade data.
What stands out the most to me will be Yellen speaking at 9:15am EST. Also crude inventories to see if the oil move will continue higher.
Rates have ticked up a bit and Yellen may reiterate what Williams said yesterday about the raising of rates in June. I said to look at the data and judge what they may do from that and today’s trade numbers didn’t help. Cubs also lost to the Cardinals last night and the world is round.
We may have to wait for Thursday’s jobless claims, which are expected to drop 13k to see a bigger trend develop for gold. Will gold finally get the smackdown below $1,158 by Thursday afternoon? Or will we finally break free of $1,215? I lean long until some better data comes in.
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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