Wednesday, June 16, 2010

Gold Price is Merely Touching Back to the Starting Line Before Taking Off

Gold Price Close Today : 1229.30
Change: -3.90 or -0.3%

Silver Price Close Today : 18.432
Change -13.7 cents or -0.7%

Platinum Price Close Today: 1569.90
Change: 9.10 or 0.6%

Palladium Price Close Today: 474.05
Change: 14.75 or 3.2%

Gold Silver Ratio Today: 66.69
Change: 0.282 or 0.4%

Dow Industrial: 10,409.40
Change: 4.69 or 0.0%

US Dollar Index: 86.14
Change: 0.16 or 0.2%

I apologize for the tardiness of yesterday's commentary, but I have's satellite internet, and this is the stormy season. Late in the day thunderstorms arise and cloud our skies so the radio waves cannot prise their way skyward to realize their transmission. Hence, your commentary did not digitize.

STOCKS couldn't make up their mind today. Some indices rose, others fell. Dow spent half the day down nearly 75 points, rose to unchanged at noon, oscillated around unchanged, and at last close up a Magnificent 4.69 points, which is almost visible from 8 inches away, but hardly visible from outer space. S&P closed down 0.62 at 1,114.61. Rally hath run out of fuel. Stay out of stocks, if you value your capital.

The US DOLLAR INDEX for two days has bumpety-bumped along 86 with a low about 85.90. 'Tis probably about time for that support to give way. Dollar rallied today from 80.90 low to 86.40, but this inspired no one. It's under the 20 day moving average, suspended over empty space, supported only by a far distant 50 DMA at 84.35, and whispered support at 85. Dollar will lose more unless it can close above 87.

The GOLD PRICE fell on the Comex $3.90 to close at $1,229.30. That's really not bad, because there is an established string of closes above $1,228, so hanging on here looks like gold is merely touching back to the starting line before taking off. Of course, that also means gold must not drop below $1,228.

The SILVER PRICE remains in the uptrend established since 4 June. Friday, and will remain as long as it doesn't close below 18.29, the 50 DMA. Precarious is silver's present stance with a preceding top at 18.70 (intraday) and last top 18.68. today on Comex silver fell 13.7c to close 18.432. Silver's big hurdle remains 18.80.

Inspired no doubt by silver's luster, a reader went to and clicked on silver's point and figure chart, something I don't check regularly. It listed the upside target for silver at 29.00. That's music to my ears.

The elder is blooming around here, and have loosed their spicy perfume throughout the world. Nights are magical in Tennessee summers.

On this day in 1456, 25 years after being burned at the stake, Joan of Arc was exonerated of the heresy charge by King Charles VII of France. French courts apparently move pretty slowly.

On this date in 1567 Mary, Queen of Scots, was imprisoned in Lochleven Castle in Scotland. Somebody was always imprisoning Mary, maybe because she was always secretly plotting to overthrow somebody's government, even her own.

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

- Franklin Sanders, The Moneychanger

© 2010, 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.