Remember on Friday I wrote that SILVER and GOLD PRICES might have a shallow correction this week. Well, "shallow", I reckon, is relative. Both gold & silver prices fell back today toward strong resistance.
Gold's must hold point is $650 and silver's is 1350. Gold's low today was 655.40 and silver's was 1364.
Remember that bull markets always climb a wall of worry, so the bull will try his best to terrorize you with this correction. Remind yourself also that it is normal for a market to make two or three tries at big resistance. After last May's highs, silver and gold stand before the next highest highs. It's clear they would have to challenge 1406 and 667 more than once.
On Wall Street joy reigned with another new all time high for the Dow. What can I say? Stay out of the way.
The DOW IN GOLD DOLLARS also rose today, above G$400 (19.35 oz) to close at G$402.22 (19.46 oz). To put this into perspective for y'all, think about this. First resistance begins around G$417 (20.17 oz), or nearly G$15 (about 3/4 oz) higher. Next serious resistance comes in around G$425, then G$436 (21.09 oz). So far, we're a long way from there. As it stands, I have to conclude that stocks may stay up quite a while longer, a month or more, but they aren't likely to gain much on gold.
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.