Thursday, January 14, 2010

Both Silver and Gold Prices Keep Hopping Over Resistance

Gold Price Close Today : 1142.60
Change: 6.20 or 0.5%

Silver Price Close Today : 18.643
Change: 10.5 cents or 0.6%

Platinum Price Close Today: 1611.50
Change: 82.20 or 5.4%

Palladium Price Close Today: 444.70
Change: 24.15 or 5.7%

Gold Silver Ratio Today: 61.29
Change: -0.013 or -0.0%

Dow Industrial: 10,710.55
Change: 29.78 or 0.3%

US Dollar Index: 76.88
Change: -0.07 or -0.1%

Today makes me wonder if I shouldn't stop my foot-dragging and suspicion of SILVER and GOLD PRICES and admit that both are strong as a garlic milkshake. Why? Because both keep hopping over resistance. Today the GOLD PRICE rose above $1,140 again, up $6.20 to close on Comex at $1,142.60. The SILVER PRICE climbed 10.5 cents and ended on Comex at $18.6430.

The GOLD PRICE has formed an uptrend over the past three days. Now that support at $1,130 has become very important, and gold is aiming at resistance $1,155 - $1,160. Needed are good solid days of advancing, $ 5 - 10 a day, bulling through all resistance. A second failure at $1,160 would be bad news.

The SILVER PRICE pushed up another 10.5 cents today, and needs only another 30 cents to clear its last high. Do y'all remember last year? Silver and gold prices made lows in mid January, and 40 days later were at 1st Half 2009 highs. They can move very fast.

Results for last year now in, 31 Dec 2008 to 31 December 2009: S&P500 up 23.5%, Dow up 18.8%, Gold price up 20.8%, silver price up 35.6%, platinum price up 56.9%, palladium price up 118.4%, and US $ index down 5.2%.

Since gold's bull market began in 2001, the gold price has risen from $278.70 (31 Dec basis) to $1,095.20, up 293%. Silver has climbed from $4.579 to $16.822, up 267.4%. But cheating a bit and counting silver's big gains since 31 Dec 2009, it has risen 308%. Meanwhile, back in Stockville the Dow in Gold Dollars, which measures the performance of stocks by gold, has dropped 76% since stocks bear market began in 2000. At end 2000 you needed 39.657 troy ounces of gold to buy the whole Dow; today you need only 9.521. Res ipsa loquitur.

US DOLLAR INDEX, on the other hand, is now trading 9 basis points down at 76.755. In fact today's chart doesn't look as sick as yesterday's, and the dollar may have carved out a bottom for itself, provided it doesn't close below 76.60. Resistance stands above at 77, so the dollar must jump that hurdle before we can talk about any rally.

The DOW has now reached that place in a bearish rising wedge where it begins to spike out above the upper trend line. This lasteth not long. Dow closed at 10,710.55, up 29.78 and S&P500 closed at 1,148.46, up 2.78. New highs.

Thank you very, very much for your prompt responses to my request for ear ache cures. I thought I might have cured the ear ache last night with treatments on a Bio Frequency machine, but it came back this afternoon. Most of your responses called for garlic oil, olive oil, vinegar, or hydrogen peroxide. About half used garlic, one even advised to put a whole clove in your ear for 20 minutes. Don't laugh, I tried it, and it helped.

On 26 February I'll be speaking in Atlanta at the 10th Amendment summit, and on 6 March in Richmond, and on 20 Feb in Montgomery, Alabama. Tonight, as every 2nd Thursday, I'll be having supper with Catherine Austin Fitts and afterward join her on the Solari Report subscription phone call. The rest of the time I'll be sitting here in the office, trying to figure how to escape to the woods.

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. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't.