Thursday, December 20, 2007

Gold Needs to Rise Along With Silver Tomorrow, Otherwise We'll Just See More Meaningless Back & Forth

Gold Price Close Today : 799.20
Change: -1.90 or -0.2%

Silver Price Close Today : 14.196
Change: 12.3 cents or 0.9%

US Dollar Index Today: 77.81
Change: 0.24 or 0.3%

Gold up, silver down, silver up, gold down -- markets are confused & can't figure out which way to go. Don't like that. It may be merely people settling things at year end that have nothing to do with the underlying direction of the market, or . .

The GOLD PRICE fell $1.90 today to close at $799.20, below the psychologically important $800 mark. Meanwhile, the SILVER PRICE went the opposite direction to close up 12.30 at $14.196, a new high for the move.

Silver says yes, gold says no, & gold drops a couple of bucks in the aftermarket. Bewilderment & confusion, and that's usually weak. If they're going to rise, tomorrow gold needs to rise along with silver. Otherwise we'll just see more meaningless back & forth.

Boundaries for the gold price right now are $813.50 above & $793.30 below. Only trading above or below those lines will move the market. For the silver price the same numbers are $14.196 and $13.826. Remember that this time of year markets are thinly traded. Sometimes the few traders present will run the markets up or down to make themselves a few quick bucks, but the action really doesn’t mean anything.

The US DOLLAR INDEX rose another 21 basis points today, trading now at
77.78. That's knocking on the door of 78. Now the $ stands above its 50 day moving average (76.53) and the 200 DMA stands at 80.17, about where it will meet the downtrend line if it keeps on climbing.

STOCKS breathed new hope into the optimists today by making up yesterday's losses and closing over 13,200 again at 13,245.64. This is a sad story playing out, since the ending shows in the chart already. Look for big trouble in January.

Today I need to beg a favour from y'all. My son Justin & his wife Ellen had our first granddaughter, Caroline, on 26 July. She's always been a little small, but plenty bright. Yesterday she had to go into the hospital with laboured breathing, & was diagnosed with double pneumonia. Would y'all please pray for little Caroline's complete recovery & health, & for God's peace & comfort for Justin & Ellen?

As if that weren't enough, yesterday we also found out that my nephew's 18-month old son, Colin Sanders, has a tumour on his kidney, which is being surgically removed today. Would y'all please pray for Colin's healing, & for his parents, Brett & Mindy?

I do understand that prayers are not measured by the pound, & that the prayer of one person accomplishes much, but it would greatly comfort me if I knew others were also praying for these babies.

- Franklin Sanders, The Moneychanger