Gold fell to an 8 month low today but rebounded mid-day. The scores for gold and silver stayed at -100.
Was this the Bottom for Gold?
Was this a turn up in gold from oversold conditions? Sure. One day does not a trend make, so we need to realize that upturns always come and we were due for a move higher. Unfortunately any upturn in precious metals will be followed by a test and break of the lows as I have been warning about.
From the Trading Desk
Gold traded down to $1,205 overnight before speculative traders and physical buyers in Asia came in to lift it off its lows. Gold gained further legs in the NY session as equities sold off swiftly. A report that Russian lawmakers, in response to sanctions, may draft legislation that would allow them to seize foreign assets weighed on US equities. The Dow Jones is currently down 240 points (1.40%) and the inverse correlation it has had with gold of late allowed for the yellow metal to move up past $1,220. Silver hasn’t been able to move into positive territory like gold has today and support remains at $17.
Mining Stocks Leading Gold Down
Mining stocks are breaking their lows and testing their 52 week lows depending on the indexes or ETFs. The following is the chart of the Canadian miners ($CDNX) followed by the HUI Gold Bugs Index and the ETF GDX. They aren’t pretty charts.
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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