Gold dropped to its lowest price since April 2010. Silver got slammed earlier in the morning falling to $15.09 and then bounced up to close at $15.40. The dollar has had a nice run the last week and pis getting close to what I see has some resistance on the monthly chart at 88. It has hit this price and gone just over in November 2008 through March 2009 and again in June of 2010. Will we get another decline? Not if Japan and Europe keep printing. We will find out tomorrow what the ECB does. I think we all know the answer. They don’t have a choice but to continue the QE. We will see if this takes us over the 88 mark for the dollar and what it might do to gold. From there we may get a bounce.
Elections
No, the Republicans winning the Senate isn’t going to usher in any fiscal responsibility.
From the Trading Desk – U.S. Mint
The US Mint has just announced that they are temporarily sold out of American Eagle Silver Bullion Coins. They are in the process of producing more and will advise when additional inventory is available.
With the temporary hiatus in American Eagles we are now seeing higher premiums in American Eagles and Canadian Maple Leaf coins. If you are considering buying this dip, the silver rounds are still at a very low premium. Call us to ask what the current premiums are @ 888-604-6534. Keep in mind some of my suppliers are pushing out delivery dates to December. This is a good opportunity to allocate for those who are dollar cost averaging into a position.
UGAZ
UGAZ had another stellar day up 3.22%. I would sell half or all before the supply announcement tomorrow locking in profit for those who still own it. Let the other half ride with stops and if a good report enjoy the ride and move stops up. If it isn’t a good report stop out immediately.
JDST
JDST was up over $5 before the market opened so would have been hard to play although it did linger and progressively move up throughout the day clsoing up 20.43% @ $39.79.
USO
USO continued to bounce off the $29 resistance level. Nothing I would consider but am still watching.
-100 Scores
Scores for GLD, GDX and SLV are all -100. The scores haven’t let us down as far as keeping one from catching a falling knife. I have not given any signal to jump in the miners but might be getting close. When the likes of NUGT and JNUG bounce, they will bounce quickly. JDST seems to be the only metals game in town with a score of +100.
I don’t want anyone to consider what I say as advice. I just give the info and you make the decision to trade or not. Hopefully you like what I write. I try to call it like I see it.
10-05-14 GLD CHART
10-05-14 SLV CHART
10-05-14 GDX CHART
10-05-14 USO CHART
10-05-14 UGAZ CHART
10-05-14 JDST CHART
Related posts
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.