Gold Price Close Today : 1,188.00
Gold Price Close 9-Jul : 1,209.60
Change : -21.60 or -1.8%
Silver Price Close Today : 17.773
Silver Price Close 9-Jul : 18.053
Change : 28c or -1.6%
Platinum Price Close Today : 1,064.88
Platinum Price Close 9-Jul : 1,530.80
Change : -465.92 or -30.4%
Palladium Price Close Today : 453.35
Palladium Price Close 9-Jul : 458.25
Change : -4.90 or -1.1%
Gold Silver Ratio Today : 66.84
Gold Silver Ratio 9-Jul : 67.00
Change : -0.16 or -0.2%
Dow Industrial : 10,097.90
Dow Industrial 9-Jul : 10,198.03
Change : -100.13 or -1.0%
US Dollar Index : 82.577
US Dollar Index 9-Jul : 83.986
Change : -1.41 or -1.7%
This week rode everything hard and put it away wet.
October GOLD futures gapped down on open. Comex spot month slammed down $20.10 to $1,188.00.
The GOLD PRICE continues in a down trend begun with a double top on 18 and 25 June. It has nearly reached the bottom uptrend line from the February and March lows. Gold hits that line at about $1,175. Today's fall ought to mark the limit of the entire correction, or nearly so, provided the gold price closes no lower than $1,175. Below that strong support flexes muscles at $1,160 and $1,145.
Today the SILVER PRICE wiped out all last week's work, returning to where it stood seven days ago. The trip has merely wasted buying power. After opening at $18.23, the silver price fell straight down to a $17.72 low just before 10:00 EDIT. Disinclined to drop further, it vibrated between $17.75 - $17.90. Comex closed $17.773, down 57.3c.
What next? The silver price has fallen through its uptrend line from February 2010, but only barely. Even if it fails to hold here, the uptrend line from November 2008 should catch it, and today that lies about $16.70. Between here and there stands silver's 200 DMA at $17.63, which might stop any fall as well.
From here the rest of the summer will be a frustration, a trading range. The silver price may erode maddeningly, or it might hang around here. Next week will tell us. If the silver price breaks $17.50, then it will move lower, to $16.50; if the silver price clears $18.50, it will race higher.
THE GOLD SILVER RATIO is still within its even-sided triangle, and presents us with a cliffhanger. Over 69.5 it breaks out upside, under 64.5 to the downside.
Keep on buying silver and gold on every price decline. Both remain in a primary uptrend, a bull market that will run another 5 - 10 years.
STOCKS opened down this morning, fell hard, and kept on falling all day. Low was struck at 10079.58, but closing came barely above that at 10,097.90, down a massive 261.48. S&P hurt worse, shedding 31.6 to close 1,064.88.
The Dow had rallied to its 200 day moving average (10,380.03) and today collapsed. Once it falls below its 6 July 2010 low at 9,743, it finds only air to 8,800. Below that the next support appears around 6,500. The Dow is set to drop dramatically.
The DOW IN GOLD DOLLARS has topped in its countertrend rally that carried it to G$177.58 (8.5907 oz). Last low came at G$162.48 (7.860 oz) on 30 June, so when it passes that it will accelerate into free fall, hurtling toward G$145.37 (7.032 oz). Ultimate target is G$41.34 to G$20.67 (1.000 to 2.000 oz). Gold should strengthen against stocks, that is, stocks should plunge.
US DOLLAR INDEX underwent a wretched week, losing 141 basis points, nearly 2%. The dollar has fallen so long that a rally, even a weak countertrend rally, is bound to come soon. Dollar appears to have made a little V-bottom today at 82.085, so it has fulfilled my 85.00 - 85.25 target for this move. Expect a rally next week. Euro at 1.2926 has nearly rallied to the area (1.2987) where it began its fall off the cliff, so it is ready to correct downward.
Y'all enjoy your weekend! Argentums et aurum comparanda sunt --
-- Silver and gold 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 bubble has burst, primary trend down.
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.