Correction Well Under Way!
Gold dropped about $20 yesterday. That is some drop! For the last twenty-four hours, Kitco reports the high of $559 yesterday at 10:00 a.m. NY Time and a low of $545.10 today at 8:28 a.m. This should give Barrick an opportunity to rid itself of some hedging of forward sold gold. That would be a positive outcome of the drop.
The dollar rallied for no real good reason other than some very aggressive dollar bulls pushed it up. Do you think that maybe, possibly there was some covert manipulation of currencies? There always is by the central banks. Of course, the FOMC did raise the interest rate another .25%. Likely that was priced into the currency markets well before. The dollar remains the reserve currency for most of the world. However, it is still in a downward trend which has yet to end.
Looming on the horizon is the Iranian EURO oil market which is scheduled to open next month. This would be negative for the dollar. The rhetoric about Iran has not cooled very much in the last few days. We must pray that a diplomatic solution surfaces very soon.
Gold ran up so rapidly that there was likely some profit taking. As Russell said, this was likely a good thing to rid the market of speculative investors taking profit and moving to other investments. Now maybe most of the mining stocks will be in hands of those who are in for the longer haul. The long term bull market in gold has not been broken and this is only a temporary correction.
I thought that $550 had a good possibility of holding, but it was taken out with ease. Gold is now at $549.10 and seems to be crawling back up. Two steps upward and only one step down >> I hope!
Almost in concert with gold, silver had a twenty-four hour high of $9.47 at 9:59 yesterday morning and a low of $9.22 about 10:00 yesterday evening. It is now at $9.38 and seems to be rising.
DROOY is trading at $1.49 at present. So, if you are not on board, it could be a good time to jump in. I will likely pick up some more at these prices. You make your own decision.
It is a cooler day in San Antonio. Of course, it has been a very warm "winter." There has been almost no winter at all. There is a forecast for freeze later this week and possibly some needed rain. Of course, our last freeze day is about March 15, so there is more time. The Lord has blessed us with wonderful clear weather since Thanksgiving. It has been a wonder!
We must always remember to pray without ceasing and in everything give thanks to the Lord for His grace toward His people. We must have an attitude of prayer and praise for Him at all times.
Best to each, Doug
The dollar rallied for no real good reason other than some very aggressive dollar bulls pushed it up. Do you think that maybe, possibly there was some covert manipulation of currencies? There always is by the central banks. Of course, the FOMC did raise the interest rate another .25%. Likely that was priced into the currency markets well before. The dollar remains the reserve currency for most of the world. However, it is still in a downward trend which has yet to end.
Looming on the horizon is the Iranian EURO oil market which is scheduled to open next month. This would be negative for the dollar. The rhetoric about Iran has not cooled very much in the last few days. We must pray that a diplomatic solution surfaces very soon.
Gold ran up so rapidly that there was likely some profit taking. As Russell said, this was likely a good thing to rid the market of speculative investors taking profit and moving to other investments. Now maybe most of the mining stocks will be in hands of those who are in for the longer haul. The long term bull market in gold has not been broken and this is only a temporary correction.
I thought that $550 had a good possibility of holding, but it was taken out with ease. Gold is now at $549.10 and seems to be crawling back up. Two steps upward and only one step down >> I hope!
Almost in concert with gold, silver had a twenty-four hour high of $9.47 at 9:59 yesterday morning and a low of $9.22 about 10:00 yesterday evening. It is now at $9.38 and seems to be rising.
DROOY is trading at $1.49 at present. So, if you are not on board, it could be a good time to jump in. I will likely pick up some more at these prices. You make your own decision.
It is a cooler day in San Antonio. Of course, it has been a very warm "winter." There has been almost no winter at all. There is a forecast for freeze later this week and possibly some needed rain. Of course, our last freeze day is about March 15, so there is more time. The Lord has blessed us with wonderful clear weather since Thanksgiving. It has been a wonder!
We must always remember to pray without ceasing and in everything give thanks to the Lord for His grace toward His people. We must have an attitude of prayer and praise for Him at all times.
Best to each, Doug
posted by Doug @ 8:46 AM
0 Comments:
Post a Comment
<< Home