Thursday, May 22, 2008

Gold Prices Relaxed a Bit Today

Gold Price Close Today : 917.90
Gold Price Close Yesterday: 928.00
Change: -10.10 or -1.1%

Silver Price Close Today : 17.975
Silver Price Close Yesterday: 17.998
Change: -2.3 cents or -0.1%

US Dollar Index Today: 72.15
US Dollar Index Close Yesterday: 71.89
Change: 0.25 or 0.4%

As I hinted yesterday, SILVER and GOLD PRICES relaxed a bit today. The GOLD PRICE was pummeled, closing at $917.90, down $10.10,while silver dropped only 2.3 cents to $17.975.

Do y'all see the disagreement? The SILVER PRICE refused to back off the way gold did. With both metals blasting upward, that non-confirmation is positive. I expect silver and gold to close higher tomorrow, finishing out the week above $18 and $930. But I ought to add that if they do NOT end the week higher than today, that would taste of weakness.

The gold price is testing its 50% correction level, silver roughly 62% (actually 58%). It's not surprising a lot of sellers gang up on them at those predictable levels. Be patient. Keep buying silver and gold.

Turning the world upside down, it's not surprising after two days' fall of 427 points that the Dow would,bounce today -- but Oh! What a dead cat, only 24 points.

About the US DOLLAR INDEX. Today it climbed above 72 again to close at 72.146, up 25 basis points. Let us assess. If it dipped below 72, and doesn't again,fall below that, then the dollar has a double bottom,with the previous (lower) low. However, another close below 72 would be fatal at this stage.

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 $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.