Today was one of those times I was referring to yesterday when I said the following;
For a good idea on what to expect, keep an eye on the VIX (volatility) index to see if fear may give gold a bigger boost this week. I would have to see gold move past $1,200 to get excited. I have bets out there that gold falls below $1,000 before it moves past $1,400. As much as I am a believe in gold, I have to see this final smackdown come first.
Gold just didn’t do what it should have done today with the fear as represented by the VIX that I eluded to yesterday. Not even close as the dollar too took a hit. Those who played the VIX long today through UVXY or the like saw a 30% plus gain.
The dollar is still above where it was a week ago. The U.S. stock market also took a big tumble today joining China.
But with all this volatility and stock market smackdown, gold could only muster a $5 gain? In fact, gold fell $6 from when I finished my Current Thoughts report yesterday as the stock market in the U.S. kept falling with the dollar all day today.
Gold mining stocks took a hit today of 1%, especially the junior miners, despite gold being up as they felt the effect of the overall stock market decline.
Gold and silver are giving us a mixed signal right now with gold as a strong buy and silver as a strong sell.
I don’t think anyone could give you a good answer as to what tomorrow will bring, but nothing has changed in my book. Silver is feeling the deflationary effects and gold is buoyed by being more of a monetary metal (not just in the U.S.) and bankers are trying their best to keep the real sign of fear; a higher price of gold, at bay. They are doing a damn good job.
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About Doug EberhardtDoug 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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