This is one of those days where there just isn’t much to say about gold and silver. We waited all day for some news from the Fed and when it came, we just didn’t get much action.
I saw many ETFs get whipsawed today and that’s what market makers do with news. They try and run stops both ways. Take a look at UVXY today. Fed minutes released and it broke higher, the fell to a lower low, then it reversed and went to a higher high from pre’2pm. Classic market maker running of stops.
The dollar is still putting pressure on gold as it is now in the 95.40 – 95.60 range. If it breaks above 96 again (or when) I think this will be the end of the gold run for now, but we do have the June, July, August typically good months for the metals. This is not cast in stone however. Anything can happen. So keep an eye on the dollar for clues. You all know where I lean eventually; under $1,000, before liftoff.
I also see interest rates heading lower, especially now that the Fed members during the last meeting mostly said to hold off on raising rates the next meeting.
That’s it today. Short and sweet. No need to rehash things over and over each day like other websites. I try to keep things simple and give you what I watch to help you understand where we are. We still need patience for the price to fall. The Fed gave us a clear sign today that they are seeing the data the way I have been describing it (not good). It should come as no surprise that the Fed will hold off on raising rates.
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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