Gold started the
day higher, reaching $1,019.50 in the overnight markets, but while it was
firmer at the open it fell back shortly thereafter with gold down $3.30 in
early trading. Silver reached a high of
$17.40, but then pulled back to a $.20 loss, just after the open. The dollar is rallying, up 12 basis points
at 76.30 and oil is down $.32 at $72.15 a barrel. Both of these factors weighed on the precious metals. In the view of some analysts today's action
is simply end of week profit taking and book squaring.
With the amount of
volatility that we have seen in the markets, gold could easily end in positive
territory as could silver. However, it
is not out of the ordinary to expect some profit taking after such a major up
move. In addition, analysts are
discussing the possibility of a consolidation around these levels. George Gero of RBC Capital said that fresh
investment buying continues to come into the market. In other words, dips are viewed as buying opportunities.
Yesterday, Larry
Young said to the Dow Jones Wire Service regarding the correction: "It's just
natural to see people take money off the table." Another analyst James Moore the Dow Jones Wire Service: "A record
high for gold in coming days seems increasingly likely, with the dollar under
pressure, risk appetite driving equities and commodities higher ...'". Dow Jones also reported: "In overnight
activity, spot gold recouped early losses on bargain hunting after retreating
earlier on a dollar correction." They
also said: "Further dollar strength could put gold under pressure again,
although dip buying may keep it above the $1,000 per troy ounce, trader said."
Afshin Nabavi of
MKS Finance said: "Spot gold will likely range between $1,005 - $1,020/oz the
rest of Friday, as there are no big data releases and profit taking ahead of
the holidays in China and the Middle East next week may cap gold's upside ...'". Despite the likelihood of profit taking,
Nabavi says: "$1,000 - $1,005/oz will likely provide good support for gold next
week." What Nabavi seems to be
forecasting is a trading range to build a base, which would be similar to the
type of performance that we have seen many times throughout the course of the
bull market.
Some analysts even
see a more significant correction ahead.
However, the Aden Report says: "The gold price is super strong above
$990 and could now rise to the $1,200 level before this intermediate C rise is
over." In other words, if there is a
correction, it likely is not anything of real consequence as long as gold stays
above $990. Based on that forecast it
is obvious that if there should be a correction, it would be viewed as a buying
opportunity. Along those lines, Dow
Jones Wire Service said: "Spot gold is likely to be supported by dip buying
when U.S. markets open, says a London based trader. Tips gold will hold above $1,010 an ounce, and says the uptrend
will remain intact as it closes above $1,000 an ounce."
Based on all of
this analysis, it would appear that gold is continuing to be a buying
opportunity even at these levels. Along
those lines another trader told Dow Jones Wire Service: "I expect gold to firm
up again and to consolidate in the $1,018 - $1,030 an ounce area before making
an attempt to break the old record high."
Gold investors
should look at these market reports and evaluate them for themselves. If you continue to believe that the dollar
will weaken, that inflation will rise, and that other investment alternatives
seem unattractive, then you too should be accumulating gold at these
levels. Call Goldline today for
assistance in getting started at 1-877-341-2646. You may also wish to receive the free information package, which
includes an update to the GFMS 2009 Gold Survey. This update contains their latest price forecast along with other
helpful and valuable information. Call
Goldline at 1-877-341-2646 to receive that along with the free article package,
a company brochure and other helpful information.
Investors should
ask Goldline to explain the features, benefits and cost structure of the
various gold and silver investments that are available to you. 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,
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.
To receive the free
information package including articles on the dollar, the economy and gold call
Goldline at 1-877-341-2646. Goldline also provides several other helpful
articles. There are a number of other
independent third party source articles that you will find extremely helpful
and informative. You will also receive
the Client Account Agreement, a company brochure and a Coin Facts Risk
Disclosure Booklet, read these carefully before you make an investment. Call Goldline at 1-877-341-2646 now
to receive your free information package.
You should carefully read Goldline's Account and Storage Agreement and our risk disclosure
booklet, Coin Facts for Investors and Collectors to Consider. These provide important
information that you should consider before investing in precious metals. Goldline's spread,
which is the difference between the price we sell our products and the price we buy them back,
generally ranges between 5% to 20% on our most common bullion products and 30% to 35% on all
other products including our popular semi-numismatic coins such as the European francs, proof
coins and graded coins. The market must go up enough to overcome this spread before an actual
profit is achieved. All markets go up and down. 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 portfolio though others may
recommend a different percentage. Please see Goldline's risk disclosure materials for additional
information.
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