Gold started the day out higher but could not continue moving up and instead reversed course and trended down the rest of the day as seen in the following chart.
The dollar spent the day in a tight range which fits with what gold did today, not much of anything.
You may get tired of hearing it, but until we break out of this range, it’s not easy to write about choppiness of the precious metals. Gold has to break below the November 5th lows for my forecasts to come to fruition and then we are one stop closer to some fun. But I also want to see gold break below $1,000 an ounce as well.
If we do break Nov. 5th lows I would use this time to allocate more metals to your portfolio. I would save your last buy for under $1,000. Until that time, we have to be patient.
The VIX didn’t break higher, but rather it and UVXY used this area as resistance for today. We’ll see what tomorrow brings, but it is hard to get bullish right now, especially after recently hitting lower lows for the year on the DOW.
Interest rates are surprisingly still hovering around 2.4 % but don’t seem like they want to go much higher.
Not much data to see tomorrow that would impact the metals, so possibly more choppiness. There are some federal budget numbers due out in the afternoon.
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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