Gold Price Close Today : 885.90
Gold Price Close Yesterday : 904.90
Change: -19.00 or -2.1%
Silver Price Close Today : 16.303
Silver Price Close Yesterday : 1674
Change: -43.7 cents or -2.8%
US Dollar Index Today: 76.12
US Dollar Index Yesterday: 75.34
Change: 0.78 or 1.0%
Well, I couldn't have got things wronger yesterday if I had predicted a sudden epidemic of common sense in Washington & good taste in Hollywood, except for my suspicion about the US Dollar having bottomed. That paid off big time today as the dollar surged 78 basis points. That seems to have grown out of a big fall in the Euro, because on bad news in the service sector this morning, the dollar at first fell, then recovered & never looked back.
The SILVER PRICE dropped 43.7 cents today and the GOLD PRICE dropped 19 bucks. Owch. Strong support stands around 879, stronger still at 850. If that fails, you're looking at lower prices. Gold should see it's low within the next 2 to 3 days, then resume rising.
Some indicators for gold are looking poorly, pointing to extremely over-bought conditions, but if gold can recover in the next couple of days, that won't hurt.
1630 cents is important support for silver. Below that is 1525. Remind yourself meanwhile of the market proverb, "Bull markets climb a wall of worry." Right now, silver & gold have a big lead over every other currency or investment, & they're not about to give that up any time soon.
STOCKS stumbled, then plunged on news that the services industry was stalling. This looks bad, but doesn't contradict the conclusion that stocks are presently rallying. A close below the previous low close, 11,971, would mean stocks are headed much lower, but that hasn't happened yet. Until it does, the trend in force remains in force.
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.