Gold fell before the market opened and continued to fall as the dollar rose over 96 again today. I thought we might get a move higher because gold wasn’t breaking down, but it just didn’t happen yet. I would look at a fall below 96 on the Dollar Index as a reason to get in gold which it did at the end of the day and I speculated with a small JNUG position. A move above 97 on the Index is a reason to go short gold.
Just look at this 1 day chart and you can see why gold was a difficult play today, but for whatever reason I still like it especially if we fall below 96 further.
You would think that with the afternoon fall in gold we would have got more of a push up but even the mining stocks, which ended the day near the lows as the stock market too took another hit.
Here’s Gartman on the markets for those interested (confused as ever);
Let’s Turn To Supply Issues
We presently are seeing some products extend even further out for delivery. Is this the sign of a bear market in metals? Yet the prices are struggling to move higher. Something has to give soon. I know my suppliers aren’t happy about having to tell us dealers their clients won’t receive their metals for a couple months on some products and I know clients don’t want to wait that long when they are used to delivery the next week. This is VERY abnormal but it IS reality.
Luckily I do have the best prices in the U.S. and if you wanted to pay a little more I can get you metals next week if your money is in house. While supply is somewhat an issue for some products, getting a good price over spot is more important and we can do that for you. Just give us a call at 888-604-6534.
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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.