Week in Review – there’s a lot going down (or up) too!

Buy Gold Buy SilverI have been getting a lot of clients that last two weeks come in to Pacific Coin Exchange or call (even got some emails) worried about the future of gold and silver, up or down…why is it down so much now, etc…

We have taken quite the beating the last couple of weeks.  This isn’t anything new, unexpected or to be feared. There are a lot of sparks flying this weekend that could ignite a big movement for our precious metals, one way or the other (how’s that for a “no-duh” statement).

We have the continued issues with North Korea, Iran, the entire middle east, China, Russia and the rest of the BRICS+ threatening a new trade order, etc…Again, nothing new, it’s advanced a bit, but nothing new to report on these fronts.

The Fed’s talking head, Miss Yellen, teased another interest rate hike in June, we’ve been there, done that, none the less, she moved gold down. Trump signed the $1.1 trillion spending bill, funding the government until October, that, for some reason, was considered good for the paper markets, gold and silver dipped.  Job numbers came in higher than expected, unemployment hit a 10 year low…I’ve talked plenty about this farce effecting the markets – here we are again – metals dropped.

I am in no way concerned about this dip, Déjà vu (for the dozenth or more time).

There are a lot of people selling right now to be certain.  This is not smart money, if you read my post from last week, “Could this possibly be only a coincidence?” you know I said to follow the smart money, in this case that is the central banks as they are buying more gold, not selling it.  I am not a fan of central banks (another  “no-duh” statement).  I do know that they make the right plays a majority of the time, and even if it isn’t the “right play”, they make it right.  I also know that they are buying and keeping gold right now.

Many are under the influence that this is another nice buying the dip opportunity.  I agree. Could meta prices go down further? Of course they could.  It looks to be another “let’s scare people in to dumping their metals so that we can pick it up cheaper” play by the big market movers.  Again, we have to wait and see if this is case.  Right now gold, silver and platinum are on sale, in my opinion.

This weekend we also have the French election taking place and it looks like the socialist leaning character, Mr. Macron, is slated to win. What will that do to our metals? We know if the other character, Le Pen wins, she favors a Frexit (think Brexit but with a French twist). When the Brexit happened gold jumped up over $100, retracted down a bit to settle at $65 up and stayed up for sometime.  Miss Le Pen doesn’t look to be favorable right now, neither did Trump going in to the election and we all know how that turned out. Again, we’ll have to wait and see.

There’s still the heavy stench of a war out lingering out there.  It’s anybody’s guess what will happen in the markets next week.

What we do know is what the markets did last week.  Let’s look…

Gold opened the week at $1,264. Gold traded as high as $1,269 and as low as $1,225. Gold closed the week at $1,229, down $35 for the week.  Gold support is now around $1,215 then $1,191, and then $1,180, with resistance sitting near $1,240, then $1,255, and then $1,266.

Silver opened the week at $17.12. We saw silver trade as high as $17.16 and as low as $16.17. Silver closed at $16.41, down $0.71 for the week.  Silver support is approximately $16.15, then $15.80, and then $15.40, with resistance around at $16.65, then $16.95, and then $17.20.

The DJIA opened at 20950.93, hit a high of 21006.94 and a low of 20851.44, closing at 21006.94, up 56.01 for the week. Back over the psychological level of 21,000. All must be wonderful in the world again.

Oil opened the week at $49.14, hit a high of $49.26, a low of $43.88, closing the week at $46.51, down $2.63.

The US Dollar opened at 98.86, hit a high of 99.29, a low of 98.42, which was the close for the week, down .44 for the week.

It could very well get even uglier out there.   We are in unstable/unsure times, to say the least. The only thing that we know for sure is that in times of doubt, in times of political and economic unrest, gold and silver have never once faltered as a means of financial insurance and wealth preservation.  Are you insured?

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