Wednesday, October 21, 2009

The Gold Price Has Not Yet Left Its Correction Behind

Gold Price Close Today : 1,063.70
Change: 5.90 or 0.6%

Silver Price Close Today : 17.810
Change: 26.7 or 1.5%

Platinum Price Close Today: 1,361.00
Change: 8.00 or 0.6%

Palladium Price Close Today: 337.00
Change: 2.50 or 0.7%

Gold Silver Ratio Today: 59.72
Change: 0.322 or 0.5%

Dow Industrial: 9,949.36
Change: -92.12 or -0.9%

US Dollar Index: 75.09
Change: -0.48 or -0.6%

Rising $5.90 to close on Comex at $1,063.70, the GOLD PRICE appeared very strong today. But a high at $1,064.40 was lower than Monday - Tuesday. Also, the high close so far has been $1,064.20, and $1,063.70 is still lower than that. A break of $1,048 will suck gold lower. It appears awfully strong, but has not yet left its correction behind.

The SILVER PRICE rose 26.7 cents to $17.81. The low yesterday and today was $17.28 -- double bottom? Yet today's high was still lower than Thursday's. Without a close above $18.00 silver has not broken out to the upside. SILVER and GOLD PRICES really have a lot of strength pushing them up. Or is that dollar weakness pushing them up?

The US DOLLAR INDEX today lost 48 basis points to reach 75.085. Low today was 74.95, so the dollar is playing with that trap tdoor again, and will probably fall further. Dollar stands at lowest point since August 2008. I don't like it at all. Remember what happened in July 2008, when the Nice Government Men manipulated a dollar rally off a 71 low, crashing the commodity markets and ultimately precipitating the entire financial panic?

The NGM are setting a trap for the shorts. Once the trap fills up they will slam it shut. Panicking shorts will send the dollar flying, and twill be most bloody.

STOCKS stayed level all day, then collapsed about 3:30. All the lemmings shifted at once? Way stocks stand, this could just as well turn out to be only a little correction, building for a run at 10,375, or it could be the start of a new breakdown. Watch 9,900 first, then 9,500. Dow closed down 92.12 at 9,949.36 and S&P500 shaved off 9.66 to end at 1,081.40.

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.