Tuesday, June 16, 2009

Daily Gold Price Chart Looks Like Monday Marked a Bottom for a While

Gold Price Close Today : 931.60
Change: 4.70 or 0.5%

Silver Price Close Today : 14.120
Change: 10 cents or 0.7%

Gold Silver Ratio: 65.98
Change: -0.135 or -0.2%

Dow Industrial: 8,504.67
Change: -107.46 or -1.2%

US Dollar Index: 80.72
Change: -0.44 or -0.5%

STOCKS look awfully sick. Dow rose to hit its 200 day moving average (DMA, today 8,612), and rolled over like a roach hit with Raid, feet in the air. A correction here in the unsupported summertime could get bloody. I truly hope y'all do not own stocks.

US DOLLAR INDEX, with its up/down, up/down, has turned its V-bottom into a mushy W written by someone holding the pencil in his mouth. Will probably keep on climbing, but strong one day, weak the next.

GOLD's 50 Day Moving Average (DMA) at 920 really looks like a spot where gold could turn around. Ditto Silver at its 13.73 -50 DMA. Gold's low today was 929.90. Hmmmm. Daily gold price chart looks like Monday marked a bottom for a while.

SILVER's daily chart has a big gap between 14.40 and 14.60. Because markets nearly always fill gaps, a move to 14.60 will not mean anything -- yet. Although silver's chart is not nearly as plain or strong as gold's, still today probably marked at least a temporary bottom. However, it must hold 14.07.

GOLD/SILVER RATIO today near 66 must be hovering somewhere near a top. Right, it might rise to 67.50 where it fell off earlier, but 66 will work, too.

Yes, the silver price took a hard blow yesterday, as did the gold price , but it's not a catastrophe. Use these low silver and gold price opportunities to buy more.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2009, The Moneychanger. May not be republished in any form, including electronically, without our express permission.

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.