Gold: Below 1,300 Will Likely Be A Buying Opportunity

Peter Schiff’s most recent commentary on gold:

"We are at 1290 on the price of gold, so we're right below where I thought the support was at 1300." 

"I'm not that worried that we're going all the way back down to 1200."

"I don't think we see a bigger pullback though given the fact that we're not getting a rise in the dollar and oil prices are now comfortably holding above $50 a barrel."

"Strong oil, a weak dollar, to me that means that gold prices are likely heading higher even though we're a little bit below that support, I think that people are gonna buy it, I do think that 1300 is maybe the new 1200 so anything under that I think is going to be looked at as a buying opportunity."

Related trading instruments: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), Barrick Gold (ABX), NovaGold (NG), Newmont Mining (NEM)

The Federal Reserve Is In A Box

The Federal Reserve is in a box, they boxed themselves in because they've kept interest rates so low for so long, they've allowed so much debt to accumulate that now it's impossible to allow interest rates to rise. But they can't admit that so they have to pretend as if everything's gonna be fine, they're gonna be able to normalize interest rates, they're gonna be able to shrink their balance sheet. None of this is possible and it's only a question of time before traders and investors figure it out.

Markets: Yellen, US Dollar and Gold

The US Dollar got a bit of a bounce but very little in the way of upward trajectory despite the the supposed hawkishness and the way the markets are greeting what Janet Yellen said. 

So the US Dollar is already falling but it's not collapsing yet. I mean, it's falling but people are still not completely aware, there's just not enough bearishness yet in the US Dollar. Obviously if there was the price of gold (SPDR Gold Trust ETF (GLD)) would be taking off but we're not too far away from that point and when the US Dollar starts to fall next time there's gonna be nothing stopping it.