Monday, November 09, 2009

If the Dollar Falls Through 74.90, it Will Trade Below 74 by the End of the Week, and the Gold Price Above that $1,200 Mark

Gold Price Close Today : 1100.80
Change: 5.70 or 0.52%

Silver Price Close Today : 17.47
Change: 0.11 or 0.6%

Platinum Price Close Today: 1356.00
Change: 11.70 or 0.9%

Palladium Price Close Today: 334.20
Change: 3.95 or 1.2%

Gold Silver Ratio Today: 62.57
Change: 0.115 or 0.2%

Dow Industrial: 10,226.94
Change: 203.52 or 2.0%

US Dollar Index: 75.06
Change: -0.70 or -0.9%

Ahhh, suspicious souls like me watch the gold market trading all day from $1109 to $1106, see it close on the Comex at $1,100.80(up 5.70), see it climb back to $1,104-ish in the aftermarket, and begin to think the Nice Government Men must have had a tortuous day trying to play god in the markets.

Ouch, my aching manipulator! 'Twasn't the GOLD PRICE alone the NGM had to corral, but the US Dollar Index as well. It lost a weighty 70 basis points today. The market has driven the dollar back to the bottom of its current range. If it breaks 74.90, the trap door opens into the bottomless pit below. I keep on expecting the dollar to rally, but it has offered no technical confirmation so far. A double bottom at 74.90 would look hopeful at least. Test comes tomorrow. If the scrofulous dollar falls through 74.90, it will trade below 74 by the end of the week, and gold above that $1,200 mark.

The SILVER PRICE was trading above $17.60 (and therefore had broken out) and all the way to $17.75 this morning. Here again the queerest thing happened. Three-quarters to half an hour before the Comex close (13:30 Eastern) the silver price dropped like a rock from $17.65 to close on Comex at $17.47, up a measly 10.5. Queerer still, immediately thereafter the silver price rose back to 17.58 - 17.60. My, my, I do declare! What a queer day!

STOCKS rose 203.52 today to close at 10,227 Dow. S&P rose 23.78 to close 1,093.08. Seems plain that the Dow will reach that 10,375 or 50% correction mark, probably this week. Yet trust stocks not! They are like a chilled rattlesnake, upon which a man took pity and put it in his bosom to warm it to life, thinking that gratitude would keep it from biting. Alas, he misjudged the race!

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.