Friday, November 06, 2009

The Gold Price Has Entered a New Phase of its Bull Market and is Nowhere Near a Top

Gold Price Close Today : 1,095.10
Gold Price Close October 30th: 1,039.70
Change: 55.40 or 5.3%

Silver Price Close Today : 17.365
Silver Price Close October 30th: 16.246
Change: 1.1190 or 6.9%

Platinum Price Close Today: 1,344.30
Platinum Price Close October 30th: 1,321.80
Change: 22.500 or 1.7%

Palladium Price Close Today: 330.80
Palladium Price Close October 30th: 322.50
Change: 7.750 or 2.4%

Gold Silver Ratio Today: 63.06
Gold Silver Ratio October 30th: 64.00
Change: -0.93 or -1.5%

Dow Industrial: 10,005.96
Dow Industrial October 30th:
Change: 203.82 or 2.1%

US Dollar Index: 75.761
US Dollar Index October 30th: 76.350
Change: -0.589 or -0.8%

Look at those metal's gains this week! Palladium Price up $7.75, Platinum Price up $22.50, Gold Price up - whooo! -- $55.40, and amazing Silver Price up 111.9 cents, 6.9%. Meanwhile dollar index shucked nearly 59 basis points, and stocks rose 3.2%.

The Dow in Gold Dollars has broken down through G$194 - 195 support and will drop farther. That implies trouble for stocks, soon.

If you look at the Dow over 10,000 you'd think it was strong, but when you look at today's chart, you'd see only confusion. Most indices rose slightly but a few smaller ones dropped. The Dow was a swinging pendulum, back and forth, back & forth, but ended the day at 10,023.42, up 17.46 and a marginal new high for the rally.

US Dollar Index climbed a measly two basis points to 75.761. Minor support lies at 75.50, major at 74.90. Momentum indicators are rolling over to the downside. If the dollar is bottoming, it must hold 75.50 this week.Otherwise, the dollar will visit 73.50 - 71.00.

The Gold/Silver Ratio topped Monday. Notice how much silver outpaced gold this week. That ought to continue.

At Comex close today gold rose $6.40 to $1,095.10, a new all-time high. Also it made a new all time intraday high at $1,101.30. Gold may be forming a long upward wedge. If so, that warns of a correction next week to $1,065. On the other hand, a close through $1,100 early next week will send gold running like a scalded dog.

Mayhap silver succumbed today to a bit of profit taking for the week, because it fell 3.5 cents to a Comex close at 17.36. Gold price up, silver price down equals confusion. That leaves me just a bit uneasy. The silver price remained range-bound today between 17.29 - 17.59, so a close above 17.60 is still needed to break out. The Big Resistance remains 18.00.

What's the bottom line? Gold and silver prices have entered a new phase of their bull market. Gold is not (as green, silly, and ignorant Wall Street and NPR commentators claim) at a top. In fact, it's nowhere near a top. Rather, having broken through $1,000 resistance & solidified and confirmed those gains, gold is now eyeing $1,300 and, later, much higher numbers. At a 52.5:1 ratio, $1,300 gold brings silver to $24.76. Buy, don't wait.

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.