Tuesday, July 21, 2009

Gold Will Run at Least to $990

Gold Price Close Today : 946.60
Change: -1.90 or -0.2%

Silver Price Close Today : 13.473
Change: -14.7 cents or -1.1%

Platinum Price Close Today: 1,171.50
Change: -16.00 or -1.3%

Palladium Price Close Today: 256.50
Change: 2.00 or 0.8%

Gold Silver Ratio Today: 70.26
Change: 0.619 or 0.9%

Dow Industrial: 8,915.94
Change: 67.79 or 0.8%

US Dollar Index: 78.78
Change: -0.05 or -0.1%

The GOLD PRICE burst the top bound of its range ($940) but as yet hasn't been able to burst through $955. Last two days it's trapped between $955 - $945, so our "must beat" close is $955. Chart says that gold will run at least to $990. Will it then burst the bounds of $1,000? Can't say, but if not soon, then later. Gold's MACD turned up 13 July and has a long way to rise. RSI is a little higher, a cautionary sign. All in all, gold has plenty of room to move higher. Today on Comex gold closed $946.60, down $1.90.

The SILVER PRICE was stopped at $13.75 cents. It has left a V-pattern in July's chart, falling from $13.60 to $12.45, then rising back to $13.75 in six days. ΩWhew! Time for a rest. Rest, however, should not drop lower than $13.45 close. Targets in front of us are $13.80 and then $14.00.

Friends, while the summer doldrums are here you'd better stock up on silver and gold. Fall will be neither gentle nor kind. Gird up your loins and get your house in order.

The US DOLLAR INDEX has fallen nearly to its June low at 78.33. The rollover top suggests twill re-visit 77.70, maybe 76. Trading right now at 78.781, down 5 basis points.

STOCKS have risen seven days running. How long can that last? Not much longer. Yet the real question here is, Does this rally to 8,900 form a double top with June, & therefore cap stocks rally, OR will the Dow march further toward 9,700? Regardless stocks should correct in the next couple of days, and once that correction passes, we will see the longer term direction. Dow today rose 67.79 to 8,915.94, and S&P 500 closed 954.58,. Up 3.45.

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.