Gold and silver continued their downtrend today with gold falling about $13 an ounce and silver 18 cents. Like a magnet, the double bottom for gold last year is a price that is drawing ever so closer. At some point I do still believe we will break those lows as market makers try and scare the last weak hands out of their positions, especially anyone left using leverage. I have written about this in past articles and it is still on the table, especially since we are so close to the 2013 lows. Those 2013 low prices are $1,192 on June 28th and $1,195.25 on December 20th for the double bottom in gold and the 6/27 low of $18.61 for silver. Today’s low for silver was $18.82.
The dollar again moved higher closing at 84.30 on the Index.
We must keep in mind that nothing goes straight down though and I would expect a move higher sometime this week. If we do get a move higher it should then be followed by a break of the lows. We did get a little bit of a rebound at the end of the day today with gold rallying $5 and silver 20 cents.
You will notice that the gold mining shares, as represented by the Exchange Traded Fund GDX, are leading gold and silver down now with a score of -70 versus -60 for the precious metals. Most mining stocks are at 4 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
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