Gold Price Close Today : 961.30
Change: 7.30 or 0.8%
Silver Price Close Today : 15.480
Change: 26.8 or 1.8%
Gold Silver Ratio: 62.10
Change: -0.614 or -1.0%
Dow Industrial: 8,770.95
Change: 31.90 or 0.4%
US Dollar Index: 79.53
Change: -0.80 or -1.0%
Most corrections play themselves out as three waves: down (A), up (B), down [C]. Treacherous part of that is the B wave is often so strong it convinces you that the correction is over, when in fact there's another leg down coming. That could be where we are today with silver and gold prices.
Today silver and gold prices looked strong as a garlic milkshake. The Gold Price rose 7.30 to 961.30 and the Silver Price rose 26.8 cents to 15.481 Yet remember this area caused trouble for silver earlier, and the gold price finds resistance where it is as well.
And I could be wrong, too. However, correction won't be over until silver price closes over 16.00 and the gold price over 983.
US DOLLAR INDEX lived up to its recent record of volatility, dropping 80 basis points today to land at 79.532. Market doesn't believe it's worth 80, apparently. But the dollar is rallying, and has only just begun. It will see 82 before that ends.
STOCKS fiddled today, too. The Dow rose 31.9 to 8,770.95 and S&P500 rose 5.74 to 944.89.
Y'all need to bear in mind that during the summer, everybody goes away. That affects markets as well, so they tend to sort of float sideways. But stay alert, because whenever you see silver or gold prices dip, buy them. 'Twill be higher next fall.
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.