Thursday, October 15, 2009

Gold Price Should Not Drop Further than $1,020, Maybe Not Further Than $1,030 or Thereabouts

Gold Price Close Today : 1049.80
Change: -14.10 or -1.3%

Silver Price Close Today : 17.400
Change: 49.3 or -2.8%

Platinum Price Close Today: 1348.50
Change: -10.10 or -0.7%

Palladium Price Close Today: 328.15
Change: -2.65 or -0.8%

Gold Silver Ratio Today: 60.33
Change: -0.793 or -1.3%

Dow Industrial: 10,062.94
Change: 41.56 or 0.4%

US Dollar Index: 75.51
Change: 0.05 or 0.1%

began yesterday the correction they have been hinting at. The GOLD PRICE should not drop further than $1,020, maybe not further than $1,030 or thereabouts. I do not expect a long correction -- short and brief. Dollar's weak performance yesterday gives the lie to the notion that the silver and gold price hang only on the dollar. They're marching to their own tune. Correction should end not later than 30 October, maybe sooner. Take this chance to buy more silver and gold, and especially to sell any remaining stocks.

The head of the European Central Bank tried to talk up the dollar yesterday, in vain. Dollar index closed up 5 gigantic basis points. Stocks managed to punch through 10,000, as long expected, but can't follow through. Watch Dow 10,375, which is a 50% correction from the Oct. 2007 - March 2009. Stocks will probably fail around there.

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.