Why did gold drop today? I’ll tell you.

It really couldn’t have worked out any better to prove the point of yesterday’s post. Yesterday we saw an increase in the spot price og all metals, today we see a drop. Proving the technical points we covered yesterday, we were very close to busting through the resistant level of $1354, apparently with all the news that happened this morning a lot of big boys decided that it was time to take profits in metals and move money to the equities markets to take advantage of the jump in the DJIA and S&P.

Let’s look at some of the news that drove the markets. The increases yesterday were driven by two pieces of news. In no particular order, the metals moved on the crisis in Crimea, with their parliament voting for a secession to Russia. Also, the European Central Bank left their interest rates as is, that was enough to see a pretty big move in gold and the other metals.

Let’s look at the news that took back some of the gains we saw yesterday. But first, I hope that by now you are seeing the patterns here. Big spikes equal sell offs to take profits which can cause big drops, as we saw today. Today the jobs numbers came out. These numbers were slightly better than expected, the expectations were 145,000-149,000 jobs created in February, the reports came out showing 175,000 job created. How easy do you think it would be to manipulate those numbers…just throwing it out there, I’m not saying there is manipulation. All I am saying is that we need a boost in the dollar and markets right now to help tighten the economic pressures on Russia. Another interesting piece of news I found that helped move gold down today is that China’s Shanghai Chaori Science and Technology defaulted on an interest payment. I’m not sure what to think about the Chinese government’s decision to allow the default and bail the company. Do you remember when we started bailing out companies? It was a domino affect. Let’s see what happens in the next couple months.

Gold fell back to $1,325 early today, held support and bounced up approximately $10.00 pretty quick after the drop.  Silver fell below the support of to around $20.75 but edged back up to $20.97 as I type this.  If we see gold drop below support, which today is at $1,325.00 we could gold go to $1,305.00, I’m not holding my breathe. When we move back up I think we’ll hit some resistance at the same area we hit it yesterday, around $1,345 – $1,355. If we break through $1,355 look for a sell off somewhere around $1,360 – $1,375. See how fun this is! I’ve already had some very smart buyers come in today to buy dips! Makes me proud!

Are you protecting your financial future?  You better be! You cannot deny that you need protection, you cannot give me one reason why you are not protecting your hard earned savings! Can’t afford it? Nope, I have young Marines who buy one to two ounces of silver a pay period, I have others who spend upward of 30-50+% of their pay checks to make sure that they get the most for their money. Pacific Coin Exchange has the best prices you can find. You can get more money for your metal and more metal for your money at Pacific Coin Exchange when you buy gold and buy silver and if you ever need to sell gold or sell silver, it’s that simple.   You need to call, email or stop by Pacific Coin Exchange today! You’ll be glad you did!

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