Today's stock & metals markets point out what sort of effect a dollar rally can have on high-strung & temporarily overbought markets. Stocks took a small hit (40.24 points on the Dow) while the GOLD PRICE fell US$17.40 and the SILVER PRICE fell 40.2 cents. Give them a few days to digest the higher dollar.
GOLD came back to the area it's been fighting thru in the past two weeks, making a low at 724.30 & closing at 729.80. It rose in the aftermarket to 731.40, a sign of strength. Next we should get a rise, nearly to the high, then another leg down which may stop here, or might carry as low as 710. After this brief (4-5 day) correction, gold will be ready to break past US$750. A close below US$685 means gold intends a longer & more nerve-wracking correction, but that is very unlikely.
According the INO.com report of spot prices, silver's low today was 13.05, but I never saw it. 13.22 was the lowest I saw. No matter, silver held in the areas I expected (1300 & 1325). Behold! Expect silver to follow gold the next week or so. It shouldn't fall below support at 1280.
I know it's obvious, but y'all ought to be buying with both hands and your feet during these corrections.
On seemingly no news, the US Dollar index managed to rise about 36 basis points today, scrabbling over 78 and over 78.19, the 1991 low. Here's a guess how this will unfold. The buck will again sink below 78 to roughly its previous low at 77.66, where it will make a double bottom from which to rally. This should happen within the next 7-10 days, maybe less. Any close much below 77.66 would prove that is not about to happen.
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.