Market Opening June 3rd 2009

Gold was still in "break even" status by 7am EST this morning, until it finally gave way to negative numbers and was soon followed by silver (which found its way into the $16 mark) an hour or so before the market opening. If your paying attention to the ever so crucial dollar index, this should not surprise you. Today's text-book bull market correction in gold is solely due to the text-book bear market rally in the US dollar. (Bear market rallies are defined as sharp upwards movements after a long steady decline. If the dollar was up $0.20 a day for 2 weeks I'd be concerned, but I am obviously not.) The dollar had broken through a top at 79.05 and climbed up all the way to 79.25 minuets before the market opening. This move was overwhelmingly rejected within the first 10 minutes of trading here in NY. The rejection formed a clear indecision in the price seconded by the tops trailing down and has started tumbling back down. As I write this, the dollar has found support on that previous top at 79.05 and is attempting a move back up. It's fight to break above 79.25 may succeed but attempts of reviving the dollar will be seriously thwarted at the significant resistance it holds between the 79.50 to 79.70 level. The resistance at that level should hold the dollar below it. 79.05 will be the major support for it for today but even that may give out before the day is over.

Gold has found its needed support at a high spike in price in the wee hours of yesterday morning's trading around the 973.50 mark. Silver similarly found it's support at 15.75 at its own early morning trading on Tues, but gave way only to show a complete rejection of those prices and a rise up to 15.80 again. These numbers should hold for the day and provide additional support in the future should there be another decline to these figures. Again, I must assure you, the price of gold will never return to below $931, so don't fret. (*Editor's Note at 12:12pm- Support at 15.75 for silver violently gave out. It now rests on crucial support at the 15.46 level. Should this give way, the next support level is 15.26. Gold followed suit and broke 973.50 all the way down to the next level of support at 963 to 962.50 level. If this gives way 961 will be the next strong support line. Although I was wrong about the support lines holding through today, I do not believe the price will fall below 961. Should I be wrong, there a many various supports in place from 957 to 931 which in itself is a very strong support. This dive may be short lived... Let the dollar have it's day. It will be few and far between for it anyway. As I said, this is a buying week.)

As for my play on IAG, I'm still extremely optimistic. My original buy target for them was at the 10.50-10.70 mark, which I began to think was not going to be possible, but today that target price has presented itself. IAG like the rest in the industry is down today, but is doing fairly well compared to some of it's peers. It's finding support at the 10 day moving average, as is some of the other senior miners like Newmont, which is very encouraging. The play remains the same. When it breaks resistance at 11.50 its next target of 11.83 will be in its sights. That too will give way in a relatively short period of time. This is not a "guess", but a promise. This week will be a buying week. Do your own research, find a company that suits your investing strategy. I suggest IAG because they are relatively unknown in the industry with very good prospects, smart management and an exceptional record. The added benefit to IAG is the price. At the near 11 mark they are cheap enough to afford a decent amount of, as well as shelter you from some of the extreme volatility on the downside of stocks like Goldcorp, Newmont and especially Agnico Eagle.

My latest predictions for the month of June will be as follows:

1. As previously stated, the dollar will fall to 77.70 mark before finding any major support before the month is over.

2. IAG will be higher than it ever has been since being listed on the NYSE.

3. Gold will reach the highest price in history! Simply put. This one is a promise! By the end of this month you'll have to shell out four figures for every ounce of gold. Also by then or slightly after, it will reach prices higher than has ever been reached in its entire history!

Buy gold now, everything you can afford. It will not be in 3 digit territory much longer.
Hold on tightly guys, things are gonna get real interesting real fast!

THE TIME IS NOW!

-J
(If for some reason the IAG stock quote at the top right of the page doesn't load right click the box and drag down to see the quote. It is delayed by 15 min.)