Gold and Silver Outlook 10-08-2014

I wrote an intraday report today with gold at $1,215. Gold finished up $6 higher from that intraday report where I said “This could be the catalyst for a move higher for the metals, but by no means the end of the current downtrend.” Below you can see where gold closed and its jump up after the Fed minutes came out.

Here is what some of the participants at the Fed had to say that caused such a stir;

“Some participants expressed concern that the persistent shortfall of economic growth and inflation in the euro area could lead to a further appreciation of the dollar and have adverse effects on the U.S. external sector. Several Participants added that slower economic growth in China or Japan or unanticipated events in the Middle East or Ukraine might pose a similar risk. at the same time, a couple of participants pointed out that the appreciation of the dollar might also tend to slow the gradual increase in inflation toward the FOMC’s 2 percent goal.”

Global growth concerns seems to be the main issue.

I typically will write an intraday report when I see moves such as this that warrant explanation.

Settlement vs Current Prices Gold


On this volatile day where the morning session saw gold fall 0.3%, gold moved higher by 1% to a score of -55 with the news putting it squarely in sidelines mode for short term traders that were short the metal. Those with short term short trades would have covered driving up the price further. Those with intermediate and longer term shorts don’t really care about this 1% move higher. One reason they may be on the right side of the trade is the SPDR Gold Trust holdings fell .07% to their lowest levels since 2008.

Silver rose 1.1% today but the score still came in with a not so good -90, still mired in a downtrend. Silver has felt the deflationary effects more than gold during this decline of precious metals.

The dollar did what the Fed wanted it to do, falling to 85.25 on the Index after hitting the +86 mark last week. The Euro benefited moving higher. Just know nothing goes straight up (Dollar) or straight down (Euro) and central banks do talk to each other. This should be no secret.


10-08-14 GLD Chart

10-08-14 GLD Chart

10-08-14 SLV Chart

10-08-14 SLV Chart

10-08-14 GDX Chart

10-08-14 GDX Chart

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About Doug Eberhardt

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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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.