Today was one of those days where from a micro perspective, things didn’t go as planned. The dollar and both gold and silver fell today. Personally, this may represent a time to get long gold and silver based on the Greece situation potentially getting resolved. In other words, you are buying at a discount if we get the news that is expected.
The dollar then would fall further for the time being, and gold and silver as well as the miners would shine brightly.
Initial jobless claims tomorrow will be the mover for the metals. I would wait to see what that report says and then play the trend in the metals until we get the Greece situation resolved.
On these dips in gold and silver, it is a good time to add to your dollar cost averaging allocation into the metals. I get more calls from those looking to buy when prices are down because I want investors to buy on a dip rather than chase prices higher. It always makes sense to buy lower than higher, right? But many investors hear prices are rising and then buy, only to see a reversal occur.
The stock market now is drawing more investors away from the metals and this is/will continue to put pressure on the metals. The underlying data from what I see doesn’t support a higher market, but this is one indicator I watch and today we saw the trend higher in the markets continue. This is another reason the metals were beaten down today as the safe haven asset was sold for what is moving higher.
Gold and silver need to get out of their range one way or the other and after the Greece situation is resolved, I think we will have our micro answer for the metals.