Nice Run Up In Gold And Silver Prices – Expect A Pullback

Anyone who invests in gold and silver need only contribute to their stated allocation and go about their daily business as there is no need to follow the markets day in and day out if you’re not going to trade your position. When I write articles, they are not typically going to be a day to day analysis but rather a macro analysis for swing traders and buy and hold investors who allocate into a position through dollar cost averaging. Everything I read, and I read a ton, helps me formulate my thoughts as to what I write in my articles and what will go into the new book which will predict why gold and silver prices will move much higher in the years ahead.

My call for the market bottom was a pretty good one. We have gone up in price for both gold and silver since then. See the article I wrote late June. Nouriel Roubini at the time I wrote that was calling for gold to go to $1,000. But remember, he also said when gold was $1,000 a few years ago, that it would never go to $2,000. It hit about $1,920. Not too shabby. It will get there again.

Where Are Gold and Silver Prices Going Over the Short Term?

Since we have had a nice run up in price off the under $1,150 lows for gold, and have now broken through $1,300, expect another test of the lows here at some point. Same goes for silver which has had an even better rebound off the lows. There has been some short covering and other news that has driven the prices higher, including a lower dollar, but don’t think for a moment that Europe and Japan have fixed their issues. They haven’t.

The dollar should rebound here and put some short term pressure on the gold and silver bulls. Bernanke, as predicted, couldn’t let the tapering comment go for too long before he had to backtrack and this helped gold and silver prices move higher. The Fed has no choice but to continue doing what they are doing. But I still believe the attention will move from U.S. dollar issues to Europe in the weeks ahead and more buying opportunities will present themselves.

Spot prices at the time of this writing are $1,337.30 for gold and $20.61 for silver. The Dollar Index is sitting at 82.23.

If we do get the pullback, either now or off slightly higher prices, this may be one of the last chances to buy gold and silver at these prices. Come September, I plan on being more bullish, even though we may get some end of year selling as the bears try and knock gold off its now 12 year stellar run. Don’t let anyone convince you the bull market in precious metals is over. It’s not.