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.
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.
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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