From the Trading Desk
After three consecutive days of gains, gold took a breather today as the USD fought back against recent losses. US Retail Sales m/m data increased by 1.2% in May while April figures were revised upwards by .2%. Besides this positive USD news, there was also some discord in Europe related to Greece from earlier in the trading day. The International Monetary Fund announced that it had left talks in Brussels over fundamental differences of opinion with Greece. Greece, however, needs an agreement in place in order to not default on repayment to the IMF. Further complicating the picture for Greece, there was also a headline out that Germany’s Merkel may refuse a Greek bailout extension. While some might reasonably assume that the geopolitical uncertainty of the overall Greece debacle would cause gold to catch bids, the whole scenario instead caused the USD to surge and for gold to trend lower. Gold still remains very much range bound with minor near term support at $1,170 and a variety of technical resistance indicators converging around $1,200.
Gold was up a few dollars early but fell with the good news from retail sales being better than expected. The dollar being higher also kept pressure on the yellow metal. Silver is just under the $16 resistance and both metals are looking for answers as to why they should move higher. Mining stocks are looking a little weak too.
There is really not a lot of trading action right now and it a good time to be on the sidelines till something moves. The trading range for gold and silver isn’t doing anything to get people to buy the metals and this is adding more pressure as supplies increase.
If mine or my suppliers phone isn’t ringing, then that tells us there is a potential move down coming. This is one of my indicators that no one else has when diagnosing direction for the metals.
Of course the phone may not be ringing because we are not doing a good job of marketing, but why would I do that much marketing if I think the prices will fall? Instead I am using this time to write my next book, “Illusions of Wealth” and we have a new, improved website and store front for you to purchase metals, when the time comes, at a lower cost than anywhere in the U.S.
Our business model is simply to scour the internet each week and see who has the lowest prices and undercut them. It is also to provide you with the best advice I can as to where we are and where I think we are going, based on my experience and research. Hopefully this helps you make a good decision as to when to buy and I must say, my list of those waiting for my “all in” article, is quite large now. I hope I do right by them all with my forecasting.
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
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.