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Dow 23K; Gold And Silver Battle To Hold Support

Commentaries & Views

On Wednesday, the Dow closed over 23k for the first time in history; however, it is selling off this morning. The artificial rally built by the clueless Fed may be running out of gas. This rally based on tax cuts looks like the classic buy the rumor, sell the news.

Gold and silver battled on Wednesday as sellers were out in force but didn’t give way, holding $1,280 in gold and $17 in silver. Yesterday’s hold in the metals is helping them rally today. The metals continue to perform as expected, and we look for the next run to $1,300 in gold will take it to $1,320.

The stench of complacency coming from the equity markets should only be a positive for the metals, knowing that equities will have a correction. We would expect that correction to sooner rather than later, adding strength to gold and silver.

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