I said yesterday that the only thing that had me worried about a potential bounce “was the darn dollar” as it moved past 98 yesterday and today and immediately put pressure on gold today staying most of the day over 98. Gold took a hit with the good economic data from the U.S. services sector as seen in the chart below.
Yes, news still moves gold or at a minimum this chart really shows how weak gold really is. If the Greece situation couldn’t spark a fire in gold, it seems market makers are looking for any excuse to knock it down more. The Fed sure doesn’t mind this news and it gives them more reasoning to raise interest rates come September. This too is putting pressure on gold. The 10 year treasury yield rose to 2.27, and I still see lower rates ahead and this yield eventually falling below 2% again.
One report though doesn’t make the economy. All reports are skewed one way or another because of seasonality, weather or what have you. But the amount of evidence that I have seen shows me that we are entering a recession, not entering another bull phase for the economy. Of course the stock market doesn’t care about the economy. It leaves and breathes on its own. It will trade on news, but it is only a temporary move one way or the other. We are still in a bull market and not breaking down.
China is breaking down. Just look at a chart of YANG.
Oil is breaking down. Just look a chart of DWTI which in my Exchange Research Service I have been calling since it was $60 a share. It hit $137 today, an over 130% increase. I still don’t know why some of you haven’t signed up for the free trial. Perhaps the word “free” scares people, I don’t know. I do know that ever since I started the service my own accounts are doing that much better as I hit higher highs each week. Do yourself a favor and check it out by going here:
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Now, lets get that dollar under 97 and get gold going over the $1,100 mark before we get the door slammed on it once more to under $1,000.
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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