Thursday, August 13, 2009

Silver and Gold Prices Removed Most But Not All the Ambiguity Today

SILVER and GOLD PRICES removed most but not all the ambiguity today. The GOLD PRICE rose $4.00 to US$954.70 on Comex, and in the aftermarket has traded up to $955.50. Y'all probably recall that $954-$955 is a resistance area, so gold's failure to clear the whole area today leaves a trace of ambiguity still.

SILVER, glorious silver, slammed up 40.2 cents today to close at $14.98 cents, highest level since June. From here a believable rally requires silver to climb above $15.00, then run fairly quickly to $16.00 cents and crown it all by smashing through $16.00. Right now, the SILVER PRICE stands on the rallying track.

Today the US DOLLAR INDEX landed just above its 78.33 support, falling 42.9 basis points to 78.414. Now comes the buck to a real test. If it can hold on at 78.33, and re-bound, then we have to call that a bottom and expect the dollar to rally. On the other hand, if the scrofulus US currency falls through 78.33, well, you wouldn't want to kiss it good-bye, but you could wave bye-bye from a safe distance.

STOCKS keep on rising against all doubts, gaining every day in dollar terms, but stuck against gold. Dow closed today up 36.58 at 9,398.19 and S&P500 up 6.92 at 1,012.73. Dow now stuck beneath 9405 - 9425, so that becomes its next target to conquer. Any fall below 9,200 implies more falling.

Every day that passes impresses on my mind some new fact pointing to terrible turmoil in the US economy and in society. Pull in your horns. Get your business straight. Don't leave lots of money lying around in banks. Get physical gold and silver, and get it delivered into your own hands. Hold it someplace safe, and that does not mean a bank.

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.