Monday, July 13, 2009

Now Appears that the Gold Price Bottomed at $906

Gold Price Close Today : 922.20
Change: 10.00 or 1.1%

Silver Price Close Today : 12.785
Change: 14.8 cents or 1.2%

Gold Silver Ratio Today: 72.13
Change: -0.053 or -0.1%

Dow Industrial: 8,331.68
Change: 185.16 or 2.3%

US Dollar Index: 80.05
Change: -0.11 or -0.1%

It now appears that the gold price bottomed at 906 last Wednesday. Today's gold price low was 908, then it made a much higher close above the previous low at 918. Unless the gold price closes tomorrow below 918, we have probably seen the bottom.

The silver price made the first half of a key reversal today with a new low at 12.43 and a higher close at 12.785 (up 14.8 cents). More than that, it made a double bottom during today's trading. The silver price still needs to put in the second half of the key reversal tomorrow, that is, a close above today's. Assuming we see that, it's a good bet we've seen silver's low.

While lower prices for silver and gold are still possible, the gold price would have to break 906 and the silver price 12.43 to get there. I'm buying here.

Even rallying today to Dow 8,331.68 (up 185.16) and S&P500 901.05 (up 21.92), stocks remain locked in a downtrending channel. The Dow's 200 DMA stands above today's close at 8,357. As yet, nothing about this move suggests it is anything more than daily noise in a downtrend.

The US Dollar index knifed its friends in the back again today, falling 11.2 basis points to 80.46. At least it managed to hold on above 80. Without a breakout above 81.50, the dollar is going nowhere.

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.