Gold prices fell again today on a stronger than expected GDP report and continued strength in the dollar. Silver managed to eek out a little bit of a gain. Mining stocks continued to take it on the chin.
Gold and Silver Recap and Outlook
Gold has fallen 8.1% this quarter but is up 1.1% for the year still. Silver is down 9.5% for the year, clearly showing the effects of deflation. While today’s GDP numbers were strong, and silver reacted positively to them, gold should continue to fall overall and break last years lows. This will bring silver to lower lows as well, despite any potential bounces along the way.
The score for gold moved a hair higher to -90 on a stronger close. The same was true for silver and GDX.
Mining Stocks
Any traders going long the miners have to be quick to lock in profits as GDX continues to approach its 52 week low falling below $22 a share for the ETF.
Dollar Strength Continues
The dollar is headed for it’s biggest gain since 6 years ago Sept. 2008.
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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.