
UNEMPLOYMENT RATE FALLS TO 10% - GOLD CORRECTS
The dollar rose aggressively this morning gaining 59 basis points to 75.22 on the dollar index. The dollar gained in reaction to a much better than expected unemployment report from the Labor Department, which showed that non-farm payrolls fell 11,000 last month compared with a downwardly revised 111,000 decline in October. The unemployment rate edged down to 10% in November from 10.2%. This data is being widely celebrated on Wall Street. However, it may not be accurate. Remember these are preliminary indicators and are often revised at least once within a month or two.
The Dow Jones Wire Service said, "With the year end approaching, funds and individual traders are looking to capitalize on gold's gains for the month and year." Even with Friday morning's fall, it is up some 35% on the year." They also said that some market participants have indicated that gold could experience a significant correction if the dollar shows a sustained recovery. However, they also said the following, "The dollar isn't expected to strengthen meaningfully until the economy shows clearer signs of recovery and the Federal Reserve raises interest rates from near zero levels, which isn't generally expected until at least well into nextyear."
With gold overbought and posting enormous gains during the past month, a correction of the magnitude we are seeing today is reasonable and perhaps healthy for the market. Within the first half-hour of trading, gold is down $27 and silver is down $.43. Given the enormous up moves of the past month, that isn't much of a correction given the euphoria over the jobs number. Some analysts view today's correction as simply a profit-taking correction and consolidation. Moreover, it is important to note that in spite of the correction, gold is well off of its lows and indicates that there is buying interest at these levels. In fact, this is the kind of correction that many of those who have been on the sidelines waiting for a buy opportunity have been looking for. The correction may be relatively brief. Be mindful that corrections in bull markets tend to be somewhat dramatic.
If one looks at the basic fundamentals for the markets, improving jobs picture and an improving economy will begin to release inflationary pressures created by the huge expansion of money supply by central banks. That would be one of the most positive scenarios for gold that we could imagine. Dow Jones Technical Analyst Francis Bray said. "As downside risk is corrective, there is plenty of support in this market... Projected targets in the $1,245/$1,250 area are achievable on a sustained break through $1,227,50." Moreover, they continue to express a bullish forecast for gold on a technical basis on the three-day trend and the weekly trend. They further said, "However, dips should be considered good opportunities to participate in this solid bull trend which sets sites on the $1,300/$1,325 area longer-term."
Given this analysis from the Dow Jones staff technical analyst, I think that investors may wish to take advantage of this opportunity to buy the dip. This is a good opportunity for investors to consider utilizing Goldline's Price Guarantee Program, which protects against corrections for a period of two weeks. Call Goldline today at 1-877-341-2646 for information on utilizing this program and for assistance acquiring gold or silver for your holdings. You should also be aware that the Dow Jones Wire Service reported that the ECRI inflation measure increased in November. The ECRI managing director Lakshaman Achuthan said, "With the USFIG rising for eight straight months to a 14-month high, U.S. inflation pressures are beginning to simmer." It's information like this that tends to assist investors in guiding their future decisions. All information is helpful for investors. Therefore you should call Goldline for the free gold investors information package at 1-877-341-2646.
Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver products that are available. Select those that best meet your own personal and individual investing needs and objectives. Investors looking for low transaction costs may wish to consider bullion assets such as American Eagles, Swiss 20 Francs, 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 two-week 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.
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†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.
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