Tuesday, November 24, 2009

The Gold Price is Now Blocked by $1,170

Gold Price Close Today : 1165.80
Change: 1.10 or 0.1%

Silver Price Close Today : 18.455
Change: -15.5 cents or -0.8%

Platinum Price Close Today: 1448.80
Change: -8.50 or -0.6%

Palladium Price Close Today: 369.50
Change: 0.25 or 0.1%

Gold Silver Ratio Today: 63.17
Change: 0.065 or 0.1%

Dow Industrial: 10,433.71
Change: -17.24 or -0.2%

US Dollar Index: 75.08
Change: 0.04 or 0.1%

The GOLD PRICE is now blocked by $1,170. Closed today on Comex up $1.10 at $1,165.80. The gold price is forming a long, narrow flat-topped rising triangle bounded on top by about $1,170. It has traded all the way out into the nose, so should resolve tomorrow with a breakout, but that shouldn't move too far. These flat-topped rising triangles generally resolve upside.

On Comex today the SILVER PRICE dropped 15.5 cents to close $18.455. Gold up, silver down, bite fingernails. Scratch head. Yet again silver was knocked down to $18.30(10:00 a.m.), held, and spent the rest of the day trading sideways and higher, closing near the US day's high.

Another curiosity: the gold/silver ratio has shot up to 63.1. Deep as it may be to fathom, it appears we are watching a correction in which only silver participates. That doesn't sound like a situation fraught with long term stability.

Still, still, I don't believe, in spite of all the confusion, that silver or gold is ready to fall yet. Yes, a correction to $1140 - $1120 and $18.00 could happen at any time, but not yet, not yet.

Let me misstate my poor old self and one of y'all will jump on it like a hobo on a baloney sandwich! An Ozzie friend brought to my attention today that on 20 November I referred to $20.68 as silver's "all-time high." I have no idea what I was thinking, since the all-time high came in 1980 above $50.00. In March 2008, the "last" high, silver hit $20.68. Sorry, sorry!

The scrofulous US $ index hasn't broken the bottom boundary of its range yet (74.90), but has traced out a downtrend. Friday it hit a high, then yesterday a low, fall, then lower peak. Nothing here for hope or optimism to feed on. Last trade was 25.084, down 4.3 basis points from this time yesterday.

Most stocks could manage today was to climb almost to unchanged. Dow dropped sharply on the open to 10,360, then spent the rest of the day rolling that boulder up a hill (like Sisyphus), only to close down 17.25 at 10,433.71. S&P 500 closed down 0.59 at 1,105.65. Is this the beginning of the end? Like living on the edge of a volcano, the fun could begin at any moment, or the quiet last a while. What's that smoke?

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.