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Cordier To TD Ameritrade: Gold And Silver 'Quite Close' To A Low

James Cordier profile picture
James Cordier


Welcome back to Futures with Ben Lichtenstein. After the breach of the 1,300 level in gold we've seen nothing but weakness. While gold has slowed the decline and appears to be consolidating and forming a bit of a balance around that 1,228 area many are keeping a close eye on it, as the dollars traded back to the 94 level off the recent 2018 highs posted on the 19th. For a closer look at what's weighing on gold, I want to welcome in James Cordier, President and founder of OptionSellers.com to Futures with Ben Lichtenstein. James, thanks for coming on this morning. Gold prices have been well, falling sharply in the last few months. What's behind the recent weakness that we've been seeing in gold?


Good morning Ben. Can you imagine the gold bugs over the last 3-6 months watching developments in North Korea, watching the 3,000-point drop in the DOW earlier this year, and nothing, no response at all from the gold market. I think what most traders and investors have to contemplate is its price in U.S. dollars. So if you have a rupee, which recently hit an all-time record low versus the dollar, of course, the Indian nation is one of the largest consumers of gold. The Chinese Yuan has dropped nearly 10% in the last three months, and of course, their largest consumers of, second largest consumers of gold in the world. So the buying power in these two nations certainly trimmed a lot. So while here in the United States we see gold looking at pretty cheap levels, in the biggest nations that purchase gold, they haven't seen gold on sale and I think that has been a big reason why the gold market has done nothing but just kind of cascade to these lower levels over the last month or two.

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James Cordier profile picture
James Cordier is the founder of OptionSellers.com, an investment firm specializing exclusively in selling options. He is also author of McGraw-Hills The Complete Guide to Option Selling - recently published in it's 3rd Edition. James' market comments are published by several international financial publications and worldwide news services including CNBC, The Wall Street Journal, Fox Business, Reuters World News, Bloomberg Television and MarketWatch.

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Comments (4)

mikeOO profile picture
In the land of the blind the one eyed man is king. Gold has actual intrinsic value that will survive all other fiat currencies. You can't print it or move a decimal point and create it any more than you can melt a digital currency and insert it into a hole in your tooth to save it.
ComputerBlue profile picture
Bottom for gold means a top for the dollar? I say not yet. And...everyone else, including me will be wrong until we're right. I bought a litlte physical here at GLD support 115..will probably by some more.
yes it can be an interim bottom maybe followed by another severe decline. But gold is indeed close to a bottom short term. To call it 'the bottom' most gold writers here must become LT negative and that will happen when the coming rally will be short lived. We shall see.
Justin Bilyj profile picture
TD Ameritrade calling for a bottom, Cramer calling for a bottom - who else in the financial media has picked a bottom?
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