From the Trading Desk
The precious metals had an uninspiring trading day, taking some more time to consolidate this week after the last month’s plunge. Gold continues to find resistance and see steady offers around $1,100. This level has now more or less perfectly held for seven consecutive trading days. It is clearly the resistance level to watch while $1,070 is short term and fairly weak technical support. The recent FOMC minutes didn’t appear to do too many favors for gold and silver while lower than expected US GDP data also weighed on the complex.
My signal for gold strength is still the same; break over $1,100 and have the dollar fall below 97. Until then, it wasn’t a good sign that with the bad GDP data coming in that gold didn’t find a bid. Also not a good sign to see the mining stocks once again tumble.
Silver I would need to see move past $15 to get excited for a bit. The 10 year rate held steady at 2.25% and the DOW shot down then back to about flat shaking off the bad news as it has done all year.
Earlier today I wrote a bit about what others are recommending for gold and silver purchases. If I see something ludicrious like I did with an article from TheStreet.com where they were recommending 6 products that were proof coins and expensive ways to buy gold and silver. I commented on the article through their comment system but they never approved the comments. I guess they don’t like to be critiqued. That’s the way mainstream media is sometimes and if you want to bring good information to the table, you have to agree with their nonsense to get your comments through. You can read the article below.
TheStreet.com Biased Against Low Priced Gold & Silver Coins
I’m getting more and more calls from people wanting to get some of their money out of banks of late. After seeing what banks do in controlling and limiting what a depositor can get in Greece a couple times now, and after the bail-ins that we see occurring where the bank literally confiscates the funds of depositors who have too much money in the bank, is it any wonder that these depositors want to have some wealth stored at home?
I expect a quiet day in the markets tomorrow and we’ll have to wait till Sunday I think to see if we get that middle of the night large sell order in Asia that pushes gold down to lower lows. I’ve seen it enough times to question it and finally comment on it. Knowing what I know about how markets work, no one in their right mind just dumps a ton of product or stock at one time wiping out all bids at once, especially in such thinly trading market hours. It just doesn’t make any sense. But if someone did want to push the price down and possibly had heavy short positions via options they wanted to profit from, that’s one way to do it.
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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
Disclosure:
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.