Wednesday, June 06, 2007

Gold Needs to Close Over 670 Tomorrow

With lows today at 1359, silver still fought off two attempts to drive it down and ended the day down only 3/10 of a cent. Gold's chart for this week looks crummy & weak. It needs to close over 670 tomorrow. On the positive side gold did fight off an attack that dragged it as low as 664.60. This boils down to a nail-biter. Metals will, I believe, pull out & gain more, but they are running into a strong headwind.

Since the Dow in Gold Dollars has once again proven itself the most reliable indicator in the universe, let us focus first thereupon. Today it fell from G$419.73(20.304 oz) to G$415.90 (20.119 oz) -- back to the G$415-- G$417 support/resistance. So far the DiG$ has tracked perfectly what it would track if stocks were about to begin dropping against gold. Today's follow-thru just ices the cake. A close below G$415 closes the case, far's I'm concerned.

The Dow & other indices were hammered today, the Dow falling 129.79 and the S&P falling 13.57. The Dow has closed below its 17 day moving average, the first tripwire for a decline. Blood could make the footing very slippery here. I claim no expertise nor wisdom, but I would swap stocks for silver & gold. Fast.

In the face of the European Central Bank's raising interest rates the US Dollar Index fell off a bit, but very little. The $ has caught just below where it has caught before, but still looks peaked & sickly. Stay away. Shuck dollar paying assets for silver & 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.