From the Trading Desk
In the midst of another short holiday week with New Year’s Day coming up on Thursday, most market participants are mentally checked out and ready for next year to finally arrive. A parliamentary vote to elect a president in Greece failed yesterday, causing the euro to slump to a multi-year low. This helped the USD hit a nine year high against a basket of currencies and all four precious metals slumped lower in yesterday’s trading sessions.
Overnight, a weaker USD combined with some decent physical demand figures out of Asia allowed the metals to recover a tad. Chinese net gold imports from Hong Kong hit a nine month high in November and stood at 149.3 tons for the month compared with 111.4 tons in October. While the figures were strong in the context of the recent precious metals climate, the January through November imports this year are still down 32% in comparison to the same period last year. It appears that we will close out the year with gold and silver both gravitating towards $1,200 and $16, respectively.
RUSL didn’t want for us to get on board and zoomed up almost 20% today. Lots of problems in Russia still and with their banks, so watch for downgrades to come which should cause RUSL to fall more where it might be scooped up for another good trade like we had a couple weeks ago.
UGAZ was down today as the weather in the North East is still trying to figure out if winter is around the corner. Still cold most everywhere else in the nation. I still like Natural Gas at these prices for a swing trade.
TZA to me looks attractive with the stock market giving some back today. I expect more selling into the new year. I wouldn’t be long TNA now.
Oil still weak but UTWI still on radar. Buy if it hits higher highs.
Next report will be Sunday. I will be writing an article for the blog soon about where I see gold going this year. I look forward to a great year of not only gold prices but also other good research that can help you make good decisions.
Happy New Year!
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
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.