GOLD RISES ON HIGHER OIL, WEAKER DOLLAR

by Joe Battaglia | April 05, 2010

Gold continues to perform well, breaking out above resistance levels again this morning. Gold is up $5, and silver is up $.11. Silver is trading at $18 an ounce. The U.S. dollar is down 11 basis points on the index, while oil is up $.90 and the Dow is up 31 points. Analysts said that gold rose on support from higher oil prices and a weaker dollar. Industrial commodities are being helped by talk of accelerated economic recovery after Friday's positive U.S. jobs report. That support is spilling over into the precious metals markets. Jim Steele of HSBC said, "Gold is getting some tailwind from other commodities." On Friday, the Labor Department said that the economy created 162,000 jobs in March. While that number missed analysts' estimates, it was because of a smaller than expected number of hires for the census. Carlos Sanchez of CPM Group said that the jobs data had already been priced into the market.

Peter Brimelow published an editorial on the Dow Jones Wire Service in which he commented on the many conspiracy theory articles that are appearing in traditional media concerning the manipulation of the gold and silver markets. The essence of the article is that there may in fact be considerable truth to this conspiracy theory. As a result he said many who think they own gold through paper gold instruments maybe surprised to find out that there is actually no gold backing those holdings. Many people are now eschewing various paper gold instruments in favor of actual physical gold. This is a trend that maybe gathering some momentum. If so, it will put enormous strain on the shorts in the gold market. It could end in a scramble to cover short positions, which could produce a significant movement in the market. Whether any of this occurs, remains to be seen.

However, even on a pure fundamental basis the gold market still looks constructive. The same is true for silver. Silver is presently looking very constructive. It is working to overcome resistance at the $18 level. BMO Capital Markets said in a report that silver could continue to outperform gold. They said that when resistance at $18 is overcome, the next resistance will be at $19, then the early December high of $19.46.

The pending home sales index jumped 8.2% in February to 97.6. This was much better than expected. Buyers may be rushing in to take advantage of the home tax credit that expires soon. Bear in mind that if economic activity is indeed improving, then that should be bullish for gold.

Another positive development for the metals is that the Russian state precious metals repository known as Gokhran has signed contracts to buy 2.5 metric tons of gold and is ready to buy "10 tons or even more" in 2010. Again, that should be a bullish development for the gold market over the longer-term.

Given all of these factors and forecasts, investors should consider owning gold or perhaps increasing their holdings if that should be appropriate. Call Goldline at 1-877-341-2646 for assistance in fulfilling your gold and silver investing needs. Ask Goldline about their Price Guarantee Program. You may find that to be a helpful tool. In addition, you should ask for the free information package, which contains outstanding articles and information that you will find very helpful concerning precious metal and other types of products. Call Goldline now at 1-877-341-2646.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver owning options that are available to you. Select those that best meet your own personal and individual needs and objectives. Investors looking for low transaction costs may wish to consider bullion assets such as American Eagles, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these assets.

If you would like to take advantage of the Price Guarantee Program, which provides you with a window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.

To receive the free information package on gold investing, call Goldline at 1-877-341-2646. You will also receive the Client Account Agreement, a company brochure and a Coin Facts Risk Disclosure Booklet. Read these carefully before you make a purchase. Call Goldline at 1-877-341-2646 now to receive your free gold investors package.

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

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