Monday, June 14, 2010

These Non-Confirmations Often Occur Before Big Moves, Up or Down in the Gold Price.

Gold Price Close Today : 1223.30
Change: -5.60 or -0.5%

Silver Price Close Today : 18.402
Change 18.0 cents or 1.0%

Platinum Price Close Today: 1560.80
Change: 26.50 or 1.7%

Palladium Price Close Today: 459.30
Change: 12.85 or 2.9%

Gold Silver Ratio Today: 66.48
Change: -0.964 or -1.4%

Dow Industrial: 10,190.89
Change: -20.18 or -0.2%

US Dollar Index: 86.60
Change: -0.31 or -0.4%

For the third day running SILVER and GOLD PRICES are contradicting each other. Thursday the SILVER PRICE closed up and the GOLD PRICE closed down; Friday the gold price rose and the silver price fell, and today gold fell 5.60 to $1,223.30 while silver rose 18c to $18.402. These non-confirmations often occur before big moves, up or down. They show great force below and above, wrestling for mastery. Suddenly one or the other will give way, sending prices shooting. As I said Friday, I expect the stalemate to resolve by silver and gold prices moving higher.

The dollar Index spent Thursday and Friday bouncing off 87. As often happens, it bounced off one time too many, and fell through. Today it opened just under 87, and just kept on falling until it hit 86.18. After that low it recovered to 86.60 now, down 30.8 basis points.

The Dollar Index broke its 20 day moving average (86.93) today, so it is saying that it will go lower. This correction may be short term affair and stop at only 85 - 85.40. Then again, it might be a longer term correction and drop all the way to 83-83.35. The Dollars' behaviour at 85- 85.40 will signal us which outcome to expect.

The Dow reached 10,329, but those gains were far too slippery for its weak and trembling fingers: it couldn't hold on. All those gains slipped out of its hands and it dropped another 20.18 points besides to close at 10,190.89. S&P500 fell also, down 1.97 to 1,089.63.

Once again, my satellite Internet is down, so my comments will be short. I only hope they can go out to you this evening.

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.