The beginning of the month I wrote an article called Gold Bottom?
I wrote in that article; “we may still have one smaller move below $1,300 to possibly $1,280.”
We got down to a closing low of 1288.30 on 5/18 and an intraday low of 1282.27 on 5/21. There should be no question in your mind that gold has bottomed now. I say this as the U.S. dollar hit a double top today at 95.03 as well as a resistance area on the monthly chart dating back to Jan 1, 2014. Presently, we are sitting at $1,302.20 bid on May 29th.
The major reason for the dollar’s bigger move is the trouble in Italy that has put pressure on the Euro, driving it lower and thus the dollar higher. I think that will be short lived, resolved, and the Euro will begin to rise, dollar fall and gold rise. We could have a final move up in the dollar but I don’t see it. I see gold rising with the dollar if it were to occur. It’s ready.
Silver has bounced from 16.02 to 16.37 or 2.14% since that last article and is leading gold higher overall. I think it will continue on this path as we head up towards 20 now. As we approach 20 we’ll see what strength it has to push past the 19 to 20 range.
Gold should finally break $1,377 resistance and push past $1,400. From there, I want to see how low the dollar can get, what rates do and how quickly we get to these higher highs to see what momentum can be carried into the summer before the fall crash once again.
I’ll be putting out a podcast of my interview with John Exter’s son-in-law Barry Downs that you’ll find very informative in comparing the Fed of Exter’s tenure at the Fed to today’s, and some longer term predictions for the price of gold you won’t want to miss. You’ll see how Exter’s Pyramid relates to gold and why prices can go much higher than most think they can.
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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