The GOLD PRICE tested the bottom of support with a low at 624.50, then climbed steadily to close at the top of today's range, 631.90. Strong, but I suspect gold still has more work to do downside. I'm still looking at both the 50 & 200 DMAs around 613 to act as a backstop.
The SILVER PRICE fell to 1346 where it double-bottomed, then bounced madly to close up 24.6 cents on the day at 1386.1. So far that 1350 area has held, but this slide isn't finished yet. The 50 DMA and the bottom Bollinger band are nested at 1247 and 1242, while 1250 is support anyway. Silver ought to make some stand there, and below that is the 200 DMA at 1191.
For the sake of the comeback from this correction and the ensuing rally, I'd prefer silver had been weaker today, but it wasn't. Somebody figured he'd missed a bargain at 1350 and bought today.
'Tis worth noting that the Gold/Silver ratio is still dropping, dropping, and is now down to 45.43. As the correction picks up speed this ratio ought to rise, but so far it hasn't.
On a five day chart stocks have just rolled over to point down. On Tuesday and Wednesday they floated beneath 12,350, made a stab at it today (high 12,360), then just faded. There are several more days of downside coming before another attack on 12,350.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
"Buy Silver and Gold Coins at the Best Prices"
To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $1,250.00; silver's primary is up targeting 16:1 gold/silver ratio or $78.13; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.