In yesterday’s Current Thoughts I noted that because of increased sales we “may mean a continued move up tomorrow and the possibility of some short covering if indeed we do get a move higher.” We did get a small move higher today in gold and silver hit $17.60 but fell from there. What was interesting is the mining stocks did not follow through but rather sunk to lower lows. This could be in part though from the massive sell-off in stocks today.
If mining stocks actually lead gold, then gold could reverse course and continue its downward trend after just two days up. This is my guess, but purely a guess at this point based on how I saw such weakness on a day after the dollar got hit hard. Still keep an eye on the dollar. 10 year sunk to 1.39%. No sign of higher rates as I have been saying.
GLD and GDX have a score of -100 while silver is maintaining its -90 score. Investing in these are still apropos to catching knives.
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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