Daily Commentary

Gold In Consolidation Phase

by Joe Battaglia
Posted: September 23, 2009

Gold is trading down $2 and silver is down $.10.  That is in reaction to a slightly firmer dollar, at 76.12 on the index.  Oil is down $.58 at $71.17 a barrel, also reflecting concerns about what the performance of the dollar will be later in the day.  The dollar may react to the Federal Reserve's statement that will be released at 11:15 am pacific time.  It is widely expected they will leave interest rates unchanged, but may tinker somewhat with the language of their statement.  A slight correction is a helpful thing in today's market.  Gold is in a consolidation phase, attempting to consolidate the recent gains between $1,000 and $1,020. 

Dow Jones Wire Service reported: "Ongoing U.S. dollar weakness may be sufficient to take gold to new highs, says HSBC analyst James Steele.  Says a feature of the gold rally is persistent U.S. dollar weakness, accompanied by occasional questioning about the U.S. dollar's status as the world's reserve currency.  Adds G20 initiatives could weigh on the U.S. dollar, and in doing so, further boost gold."  These bullish comments from an analyst at one of the major banks are certainly important to the market.   Other analysts have consistently said investors should be buying the dips.  Today's correction perhaps provides such a dip buying opportunity.

The Dow Jones Wire Service further reported: "Further U.S. dollar weakness could be the impetus to push gold above last week's high of $1,024/oz and then a challenge of last year's all time high of $1,022.35/oz, said James Moore of the Bullion Desk."  Mitsubishi analyst Tom Kendall said: "It's a dollar weakness story but also broader concerns about the U.S. politically and economically that are driving gold higher."  He further said: "It wouldn't be surprising" if gold tests its record high in the next ten days.

Given these forecasts investors may wish to take advantage of the dip as a buying opportunity.  To do so, call Goldline at 1-877-341-2646.  If you would like to receive the free gold investor package call Goldline.  If you would like to have a free copy of a recent interview I did with Peter Grandich, you must specifically ask for it by calling Goldline at 1-877-341-2646.

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, 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.

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 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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