Gold charts are beginning to display marks of rounding bottoms
On 18 Nov 2008 was a scary one for US Stocks! The Dow dropped below 8000, and even a few points demoralizes buyers. It dropped today 427 points to stop at 7,997.28. S&P fell worse, down 52.54 points to 806.58. This is the third drop toward this same area, & truth to tell, markets only very rarely make triple bottoms. On third tries they usually break through. The Dow in Gold Dollars (DiG$) closed way down today at G$224.67 (10.867 oz) dropping through support toward the October low. Rest of November won't bring comfort to stock investors.
The US DOLLAR INDEX rose today, 54 Basis points, to 87.75. Ponder -- it remains below 88, which has stymied it so far twice, and looks ready to break down again. When it does, it will be Katy bar the door for silver and gold prices. Speaking of silver and gold, gold was firmer today and silver was mushier. Yesterday silver rose while gold fell slightly, today that was reversed. This bespeaks some confusion in the market. The big sellers have shot their wad without being able to break the market further.
Sellers are disappearing. Both silver and gold charts are beginning to display marks of rounding bottoms. If you had money to buy in share, I think better buy in Gold first.
The US DOLLAR INDEX rose today, 54 Basis points, to 87.75. Ponder -- it remains below 88, which has stymied it so far twice, and looks ready to break down again. When it does, it will be Katy bar the door for silver and gold prices. Speaking of silver and gold, gold was firmer today and silver was mushier. Yesterday silver rose while gold fell slightly, today that was reversed. This bespeaks some confusion in the market. The big sellers have shot their wad without being able to break the market further.
Sellers are disappearing. Both silver and gold charts are beginning to display marks of rounding bottoms. If you had money to buy in share, I think better buy in Gold first.
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