Things still looking down for gold even though we haven’t yet broken the Nov. 5th lows. Some of us are getting tired of the lower lows as we march towards last years lows, but I still see the good potential of a bounce. It’s a slow death march for sure, but one that I think will be countered soon enough.
Here’s what the immediate technicals show.
As you can see, it doesn’t look good for gold.
Why? Because the dollar broke above 97. This was supposed to be resistance but it shot through 97 and since the dollar action is my number one indicator of gold direction, it is no surprise that gold took a hit again today. Naturally you don’t go long gold related products when the price is falling and the dollar is rising. You can however dollar cost average in on dips, which is a smart way to buy physical metals when you are allocating gold/silver to your overall diversified portfolio.
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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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