Yesterday May Have Marked Correction Lows for the Gold Price ($985)
Change: 14.90 or 1.5%
Silver Price Close Today : 16.636
Change: 0.480 or 3.0%
Platinum Price Close Today: 1288.10
Change: 15.00 or 1.2%
Palladium Price Close Today: 295.60
Change: 7.00 or 2.4%
Gold Silver Ratio Today: 60.59
Change: -0.878 or -1.4%
Dow Industrial: 9,711.60
Change: -30.60 or -0.3%
US Dollar Index: 76.74
Change: -0.34 or -0.4%
Today the GOLD PRICE closed at US$1,008.00, up $14.90 while the silver price closed up 48 cents at 16.636 cents.
Yesterday may have marked correction lows for gold ($985) and silver ($15.97). Given their performance today, it appears so. Yet this is a chancy call, because both metals must exceed their previous peaks at $1,025 and $17.60 to confirm that the rally has resumed. As long as there are no closes below $985 and 15.97, uptrend continues.
It seems that the gold price has broken through $1,000, then made a classic touchback to $985, roughly the point of breakout, and turned up again.
Looking at the chart from Friday through today, STOCKS appear to have rolled over and headed down. Today began with a drop from 9,750 to 9,600, but by noon -- thanks no doubt to strong mystery buying, wink, wink at the Nice Government Men -- the Dow closed above 9,700 at 9,711.60, down only 30.6 points. In the aftermarket it is trying to fall through 9,700.
The US DOLLAR INDEX yesterday bounced off 77.30 and closed about 76.80. Today it continued to fall, rallied briefly to 77 where the market slapped its jaws. Trading now at 76.74, down 0.344. Last five day's chart pattern looks like a correction, not a rally.
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.