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Dollar Dives, Gold Thrives, Puerto Rico Defaults – Ep. 163

  • Gold finally traded about $1300 this morning; it was the first time since January of 2015 that the price of gold traded above $1300
  • But by the time the U.S. Stock market opened, the price of gold started to sell off, and it couldn’t hold $1300, in fact, it ended negative on the day – we closed about $1291
  • When gold failed to hold $1300, there was a lot of selling in gold stocks; in fact gold stocks were way up in the pre-market, up from 2-7%
  • Some of them opened with new 52-week highs, but then the selling commenced and gold stocks went down, silver stocks went down – GDX ended down about 1.7% on the day – not a very big move
  • There will be some people out there who will say, “It’s a reversal”
  • We didn’t hold $1200 either, the first time we got above it, but the next time we went to $1200, we got to $1260
  • I think something similar might happen with $1300
  • If I were a bear, I would cover, I’d be buying back
  • I think it would be smart to buy the dip
  • Especially when you look at the weakness in the U.S. dollar with continued today, in fact the dollar index traded down to about 92.50
  • This is the first time since January of 2015 that the dollar index has been below 93
  • The euro is above 115, that, too, is the first time since January of 2015
  • But the dollar is weak across the board, and it’s going to continue to get weak especially if we keep getting the weak data points like the data that came out today