Thursday, October 01, 2009

As Long As Gold Doesn't Close Below $985, 'Tis In An Uptrend

Gold Price Close Today : 999.50
Change: -8.50

Silver Price Close Today : 16.418
Change: -21.8

Platinum Price Close Today: 1288.10
Change: -12.00

Palladium Price Close Today: 295.60
Change: -4.00

Gold Silver Ratio Today: 60.88
Change: 0.287

Dow Industrial: 9,509.28
Change: -203.00

US Dollar Index: 77.18
Change: 0.48

The GOLD PRICE slid downhill in a narrow range today as somebody hammered on it until it closed at a meager 50 cents below the psychologically important $1,000 mark, down $8.50 for the day. Range was fairly tight, from a $1,009.7 high to a $997.8 low. Tomorrow the battle will take place around $995 and $990. My song has not changed: as long as gold doesn't close below $985, 'tis in an uptrend.

The SILVER PRICE closed down 21.8 cents, at $16.418. Low at $16.27 keeps getting higher. Silver must hold above $15.75. I don't see any internal signs that demand is weakening, signs like falling premiums on physical silver. In Euros and Yen silver is making the same weird "W" pattern it made this past summer in the US Dollar before it exploded upside.

The US DOLLAR INDEX rose 47.6 basis points today to 77.179. Although it rose relentlessly from yesterday's close, still the dollar couldn't pound through 77.30, the wall that stopped it on Tuesday. The scrofulous dollar is headed higher, at least to the last low at 77.50.

STOCKS, represented by the Dow, took their biggest drop in 3 months today. Dow fell 203 to 9,509.28. S&P 500 fell even harder, down 27.23 to 1,029.85. Can't make up my mind whether this marks the end for stocks' rally, or whether Dow will pierce 10,000 in one more doomed thrust up. Either way, I don't want to own stocks with them headed for one ounce of gold to buy the whole Dow.

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.