The correlation of the dollar moving higher and precious metals lower continued today as the dollar index breached 85 for the first time, a 4 year high. While this is only one of the indicators I follow in speculating what gold and silver might do next, it is one I give more emphasis to.
US Economic Data Good
New home sales surged in August and this was viewed as dollar bullish as well, further speculating that interest rates could be on the rise sooner than later (I disagree with this).
European Economic Data Bad
Some of the dollar rise can be attributed to consumer confidence weakness in Germany, hurting the Euro.
The dollar may be due for a breather but we’ll just have to wait and see if the metals can find a bottom here to pounce higher.
Gold Resilient – Silver Not
Gold has still not broken its 2013 low which should be noted while silver as we have noted has. The metals both remain at a score of -100, about as bad as you can get.
Mining Shares Getting Closer to 52 Week Lows
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.