Friday, March 12, 2010

Next Week Gold and Silver Prices May Drop Slightly

Gold Price Close Today : 1,101.70
Gold Price Close 5th March : 1,134.80
Change: -33.10 or -2.9%%

Silver Price Close Today : 17.024
Silver Price Close 5th March : 17.362
Change -33.80 cents or -1.9%

Platinum Price Close Today: 1,608.40
Platinum Price Close 5th March: 1,578.00
Change: 30.40 or 1.9%

Palladium Price Close Today: 462.10
Palladium Price Close 5th March: 479.15
Change: -17.05 or -3.6%

Gold Silver Ratio Today: 64.71
Gold Silver Ratio 5th March: 65.36
Change: -0.65 or -1.0%

Dow Industrial: 10,624.69
Dow Industrial 5th March: 10,566.20
Change: 58.49 or 0.6%

US Dollar Index: 79.802
US Dollar Index 5th March: 80.430
Change: -0.63 or -0.8%

The GOLD PRICE failed its challenge from last week, unable to break through $1,150, so it fell back, in spite of a lower dollar. Stocks keep on inching forward.

The gold price barely edged to a new low for the move today at $1,098.64, but closed at $1,101.70, down $6.50. Gold has established a down trend. I'm not sure whether the 5 day chart (See "XAUUSDO" on shows a triple or double bottom. Triple bottoms fall through, double bottoms reverse trend. Either way $1,100 is strong support.

But the gold price has crossed below its 20 day moving average, first hint of a down move. This might be the right shoulder of an upside down head & shoulders forming, with a drop to $1,080 possible. If so would complete the right shoulder and offer a strategic buying opportunity.

Silver's low today at $16.9415 came 11c higher than yesterday's but the SILVER PRICE fell 11.2c to close on Comex at $17.023. What can I say when the facts practice their extortion on me? The silver price began an uptrend off Wednesday's $16.80 low, but 'tis so far lazy and must best that last high at $17.64 from Wednesday. The silver price could drop as low as $16.60 without breaking the uptrend line anchored on Feb. 4.

All other indicators favour higher prices the silver price stands favourably against its moving averages. Yet, yet, yet, a close over $18.00 is needed to attract those fickle Funds and other buyers. Be patient. Silver and gold prices have disjointed a bit here.

Next week both metals may drop slightly. Meanwhile we tread the weary circle of Sampson, grinding out the grain of correction hour by drear hour until our day arrives.

Like yesterday, stocks traded on a see-saw today, winding over and under unchanged and weakening throughout the day. What meaneth this sign, that the Dow rises 12.85 while the S&P500 drops 0.25? Confusion. Bewilderment. Indecision. Coasting to a stop. Dow closed 10,624.69 & S&P500 at 1,149.99. Next week Dow will likely hit the last high at 10,730, then fade.

As yesterday hinted, the Dollar Index tumbled today, down 52.3 basis points to 79.80. Support awaiteth at 79.50, but if/when that fails, then 78.50 will be the next stop. Coming soon! More downside.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

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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.