FLASH GAGE – Gold Jumps On Low Dollar

Flash Gage - News Headlines that Impact precious metals as they happen.

The Dollar hit a ten-month low after the news that the Healthcare Bill in the Senate was declared dead.

Ten-year yield bonds around the globe are all in negative territory, giving Gold a boost this morning.

For the first time in many months I’ve been told by my friends over the pond that overnight there was good buying of Gold out of the Middle East. Oil prices are up and the weak dollar gives them all the reason to step into the Gold arena at this time.

Some of the Wall Street gold traders are long from the $1,232 area, a number we’ve been calling to confirm
that a further price improvement was in order and the market wasn’t just reacting to the Chairwoman’s comments on Thursday. But knowing how they think, if I was trading Gold and was holding a long position, I would be very careful and put a stop loss order in around the $1,233 area. As historically, if the price of gold comes back to their entry level, they will exit the market causing it to trade below the $1,230 area.

The price of silver really not reacting to the rally in gold as all the action overnight seemed to be in the yellow metal.

Have a wonderful Tuesday.

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