With the US Dollar hitting its lowest point in two years, you'd think that would boost silver and gold a little. Well, you'd think wrong. It didn't. Somewhere along the way this rally became more difficult than I expected. Today both metals backed off slightly, yet gold has mastered its last high, convincingly enough. At that point public enthusiasm ought to have kicked in, but it hasn't yet.
Silver closed today a suspicious 8/10 of one cent below the psychologically important 1400. Gold looks a trifle overbought, but silver still has room to rise Maybe we will get a reaction to 675 and 1380. That would give metals time to gather strength for another run at the highs. It's way too soon for this rally to end, and it's not that overbought.
Big news is the Dow did not make a new high today, although it certainly had the chance. Today's high was 12,790 with a 12,773 close, while the last high, 12,795, closed the day at 12,785. Oddly enough, the NASDAQ dropped today. Dow volume dropped also, substantially, pointing to an end to the present move. Hard to call this weakness, because even if it were going to exceed the old high.
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.