Wednesday, November 11, 2009

Listen to the Flashing Message: the Gold Price has Broken Out Through $1,000.00

Gold Price Close Today : 1114.00
Change: 12.10 or 1.1%

Silver Price Close Today : 17.527
Change: 31.5 cents or 1.8%

Platinum Price Close Today: 1371.40
Change: 15.90 or 1.2%

Palladium Price Close Today: 344.75
Change: 11.60 or 3.5%

Gold Silver Ratio Today: 63.56
Change: -0.460 or -0.7%

Dow Industrial: 10,284.91
Change: 37.94 or 0.4%

US Dollar Index: 75.12
Change: 0.10 or 0.1%

The GOLD PRICE keeps on repeating the same pattern: jump, run in place, jump. Thus today it jumped the $1,108 hurdle, ran to $1,118.60, and on Comex closed up $12.10 at $1,1114. Now in the aftermarket it's trading at $1,117.10. Listen to the flashing message: the gold price has broken out through $1,000.00 (one thousand dollars), and by measuring the upside down head and shoulders formed on gold's chat from March 2008 to July 2009, will rise $300 from breakout point. That means it will rise from $1,000 to $1,300.00.

The laggard SILVER PRICE lagged not today. On Comex it closed up 31.5cents at 17.527. Range today was $17.71 to $17.39. The silver price is probing, probing overhead resistance at 17.60. If it breaks through here, 'twill run straight for 18.00, then jump clean to 21.00 so fast it'll spin your head around like that little girl's in The Exorcist. Yes, the silver price cannot hang back too much longer, but it has been roughly keeping up with the gold price and now appears ready to rush ahead.

Ratio touched 64.019 yesterday, leaving behind a double top with 64.111 on 2 November. That's your second messenger whispering that silver is about to take off.

What about the US DOLLAR INDEX? Is it threatening silver and gold prices by strengthening? Not much. It's bumping along 75. Overnight it once again successfully resisted the market's attempt to drive it below 74.80, touching 74.774. But it climbed and stayed above 75.10 from 11 - 4 EST. Still, no real sign of turning and rallying, only failure to break down. Suspicious, may smell of a turn, but no turn yet. Only one term describes the US Dollar: scrofulous.

The Dow rose 83 points today to close at 10,285. S&P500 chugged right alongside, rising 5 to 1,098. Stocks are closing in on the moment of truth. Remember the Bear of the bear market always raises as many people's hopes as high as possible, to fill his lair before he mauls his victims. Stay clear of stocks. "Abandon hope, all ye who enter Wall Street."

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.