Monday, August 16, 2010

This Sort of Progress Confirms That The Gold Price is Moving Up

Gold Price Close Today : 1224.90
Change : 10.00 or 0.8%

Silver Price Close Today : 18.418
Change : 0.321 cents or 1.8%

Platinum Price Close Today : 1524.00
Change : 2.00 or 0.1%

Palladium Price Close Today : 480.00
Change : 5.00 or 1.1%

Gold Silver Ratio Today : 66.51
Change : -0.627 or -0.9%

Dow Industrial : 10,270.91
Change : -32.24 or -0.3%

US Dollar Index : 82.51
Change : -0.309 or -0.4%

This will be a short commentary, because I have to make a short trip. Still, I didn't want to remain silent, considering that silver and gold seem to be fulfilling my expectations for higher prices.

Gold pierced $1,215 resistance, then leapt to the next blockade at $1,225, up ten bucks today. This sort of progress confirms that gold is moving up, not just diddling and fiddling sideways. Next step is $1,230, then $1,240, then $1,255.8, the last high. But bear in mind that a move like this cannot stagger and stumble. It may pause to breathe a day or two, but it's forward motion must not be broken badly.

SILVER speaketh yet out of both sides of her mouth, because she hath not cleared 1860c resistance. A close today up 32.1 cents at 1841.8c is a tidy beginning, but still 'taint above 1860c. Gold/Silver ratio was also trimmed down, another favourable milestone. Ever short vulture in the world will be roosted at 1860c, waiting to sell silver, but if this move is real, after a bit of jostling, silver will shoot through that mark. If it reaches it and falls back to 1800c, you know silver is still dribbling, not shooting.

US DOLLAR INDEX dropped today 30.9 basis points to 82.506. Uptrend is not affected unless it drops below 82. Higher dollar coming.

STOCKS are melting away day by day. Dow dropped another 32.24 points today to close at 10,270.91. S&P500 trailed along, down 2.92 to 1,076.33.
Unless contradicted by big falls, silver and gold are clearly in a rally.

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.