Bombs Bursting In Air, Gold Flying
North Korea has once again defied logic and
launched another missile, this time going over Japan. The event happened after
Monday’s close and sent equity futures down 1% in the opening of the evening
session, also sending gold up another 12.00 dollars to $1,331.00.
This morning gold is trading $1,326 and will run into resistance at $1,340-$1,350. Silver reached its first resistance target at $17.72 and is now trading $17.65. We are still bullish on both, but would not be surprised if sellers showed up at some point in the next day or two.
We look at gold and silver as currency plays not fear trades. As long as the dollar continues to get punished from the Three Stooges, Yellen, Kuroda and Draghi we expect the metals to continue higher. As we have said for the last couple of months the bear market in metals is over and the next bull market is around the corner.