Thursday, March 29, 2007

Next Few Days Gold Should Trend Lower

GOLD PRICE made a low today at 655. It is in a correction now, having apparently topped yesterday (that leaves 667 as the upside point to pass). Next few days gold should trend lower.

SILVER PRICE Plainly peaked yesterday and posted a low today of 1309. The first leg of this correction may have ended today, so there will be another push up, then one final leg down. It ought to be over by end of next week.

Gold and Silver prices must act soon to go to new highs or drop into a deeper correction. Meanwhile, the indicators I watch are all pointing to higher prices so I think this correction ought to be over quickly. This is the bull market climbing that wall of worry.

Maybe the saber rattling towards Iran is confusing every market?

The US DOLLAR INDEX chart now shows a December low at 82.35 and last week's low at 82.65, looking suspiciously like a double bottom. The last few days it has been testing the low and made a series of higher lows -- an uptrend, puny though it be. Somebody big buys down there at 82.9-something. The buck is way too calm, and ready for something to happen upside. I think the danger of a new low is now past, for the nonce.

Stocks show a double bottom today with yesterday in the 12,265 area. 'Twill move higher in the next few days. Lots of room to move before it becomes terribly overbought again. Notwithstanding, swap stocks for silver & gold. Did y'all ever hear of Cato the Elder?

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.