Gold had a spike up early on, but dollar strength pulled it back to flat by end of the day. It was interesting to see gold move past the $1,200 resistance and then move it $10 below that resistance. Kind of like my feelings yesterday when I didn’t have a clear picture, and to look for the dollar to see direction, gold just wanted to take out stops both ways. When market makers are bored, this is what they do.
Platinum is at a 2 month low and this could signify we are heading lower in commodities in general and fits with my overall deflationary outlook. This metal can also be an indicator of what’s to come and shouldn’t be ignored.
U.S. consumer spending was flat and not what the Fed wants. Factory growth is still weak. Stock market higher. That’s how things work, right? Bad data and higher stocks. At least in Bizarro world.
Interest rates shot up and that could have put a little more pressure on gold today. Just so you know, I am in the camp of lower rates ahead, so if you are holding bonds, I would hold them longer.
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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