The Gold price is at a critical juncture at just above $1,080. This is now a near perfect double bottom. Overnight Thursday the dollar, currencies and the gold price were relatively stable. The day saw the gold price fall to $1,076 at one point before leaping up to $1,089, before falling back to finish, as we showed above. So the question is, “Is this a bottom for gold or will the $1,080 level be ignored and the falls continue.”
Again, we point out that the dollar has not broken through the 100 level on the dollar Index. Thursday saw several Fed heads virtually confirm a December rate rise, no doubt trying to gauge reactions, not only in the U.S. but globally. That’s why we were watching the dollar so carefully. We re-emphasize that the U.S. cannot afford a stronger dollar, but it looks like it wants to go that way.
Meanwhile the E.U. has a day or reporting GDP in key member states. Draghi clarified that the ‘risks are to the downside’ on several fronts including inflation. It seems the use of the word deflation is too horrible to contemplate, despite its almost undeniable presence. Let’s be clear on this, growth at 0.4% can hardly be called such and could turn down very easily. This paves the way for even lower interest rates and more stimuli [and a lower euro?] in December. So prepare for turbulence in foreign exchanges!
There were sales from the SPDR gold ETF of 1.489 tonnes of gold but no sales from the Gold Trust. The holdings of the SPDR gold ETF stands at 661.943 tonnes in the SPDR gold ETF and at 159.85 in the Gold Trust. These sales had small impact on the gold price
Silver prices are marking time waiting for gold to give them direction.