Monday, March 29, 2010

Gold is on Track for Higher Prices

Gold Price Close Today : 1110.30
Change: 6.00 or 0.5%

Silver Price Close Today : 17.373
Change 38.1 cents or 2.2%

Platinum Price Close Today: 1627.10
Change: 29.70 or 1.9%

Palladium Price Close Today: 474.00
Change: 18.65 or 4.1%

Gold Silver Ratio Today: 63.91
Change: -1.080 or -1.7%

Dow Industrial: 10,841.21
Change: 5.06 or 0.0%

US Dollar Index: 81.28
Change: -0.16 or -0.2%

Surprise, surprise, stocks rose today. Well, what did y'all expect? It's Monday, and the Nice Government Men needed to clean that first item off their agenda.

Stocks are stymied at Dow 10,900. Last week the Dow hit a high of 10,955.48, but without a close anywhere near that. Remember it kept trying to rise but could never hold on to its gains. Today's close was 10,896.31, up 45.95. S&P500 rose 6.66 to 1,173.25. A top lies down the road 30 - 45 days, I suspect.

The US DOLLAR INDEX is pounding on the cellar door at 81.20. Once it steps through that door it will fall down the stairs to 80.50 or even 79.50. Intraday his of 82.25 last week looks like the short term high, so Dollar is now entering a downward correction.

The DOW IN GOLD DOLLARS dropped back from its G$205 high last week to G$201.84 (9.764 oz) today. Remember I mentioned last week that either stocks were about to soar while gold plummeted, or stocks were close to their peak & gold to its bottom. Today's trading fell on the side of gold's bottoming and stocks peaking.

The silver price today popped its head above that $17 fence and jumped clean over, up 38.1c to 17.373 at Comex close. That's also above its 200, 50, and 20 (now 17.12) day moving averages. Silver is hanging on the edge: it closed right on the downtrend line, so if it pierces that tomorrow, and that seems likely, it will dash for 17.65.

Lots of steam -- this move has higher to climb.

Gold shook of that $1,105 resistance but wasn't quite energetic enough to climb through $1,118. High today was $1,114.64, and Comex closed up $6.00 at $l,110.30. Gold is on track for higher prices.

On this day in 1834 the US Senate voted to censure President Andrew Jackson for removing federal deposits from the Bank of the United States. Bank of the US was that day's equivalent of Goldman Sachs.

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.