Wednesday, December 01, 2010

Gold Price Reached a High of $1,396.53, No Doubt Resistance From the Hordes of Sellers Clustered Around $1,400

Gold Price Close Today : 1387.30
Change : 2.30 or 0.2%

Silver Price Close Today : 28.388
Change : 0.203 cents or 0.7%

Gold Silver Ratio Today : 48.87
Change : -0.270 or -0.6%

Silver Gold Ratio Today : 0.02046
Change : 0.000113 or 0.6%

Platinum Price Close Today : 1684.60
Change : 26.20 or 1.6%

Palladium Price Close Today : 732.25
Change : 41.25 or 6.0%

S&P 500 : 1,206.07
Change : 25.52 or 2.2%

Dow In GOLD$ : $167.72
Change : $ 3.47 or 2.1%

Dow in GOLD oz : 8.113
Change : 0.168 or 2.1%

Dow in SILVER oz : 396.50
Change : 8.77 or 2.3%

Dow Industrial : 11,255.78
Change : 249.76 or 2.3%

US Dollar Index : 80.67
Change : -0.526 or -0.6%

The GOLD PRICE rose $2.30 by Comex settlement to $1,387.30, but this doesn't feel quite right. During the day it reached as high as $1,396.53, and as low as $1,381.45, but 'twas really a fairly quiet day in the US. No doubt part of gold's sloth arises in the horde of sellers clustered around the $1,400 round number. Yet gold must not back off further than $1,380, and today's chart lacks direction. Feels flabby, as if it has finished a move and is ready to rest.

The SILVER PRICE had a fairly flat day as well. High came at 28.795, low at 2808c, so silver must hold on above 2808c, preferably 2820c. Comes settled up 20.3c at 2838.8c.

Daily chart looks like a kid climbing out on a tree limb. The further he slides out there, the greater the likelihood he will fall. Silver will assuage my nervousness by crashing through 2900c.

By the way, yesterday gold hit a new all time high in the Euro and (I believe) in the Yen as well.

Oh, y'all will have to break your heads a long time and with much cracking to come to a conclusion like what I saw on the news wire, namely, that stocks were up because the Euro crisis is close to a fix. I'd be glad for any of you to explain to me how that will raise the price of stocks in the US of A, but don't even bother. Quick as you get an explanation out, stock investors and media commentators will be racing after some new will o'the wisp. None of 'em have the sense Heaven gave a screwdriver.

Today on the joyful news ringing out of Euroland the US dollar index sank like a bassboat in a hurricane. 52.6 basis points went overboard while the buck sank to 80.669, down 0.68%. Euro rose 1.31c, up 1.01% while the yen rose 0.8%.

Ya, ya, ya. The tilting table turns and twists, but does it mean anything? Well, the dollar (surprise, surprise) bounced off its 200 day moving average at 81.75, and reacted. All the news notwithstanding, we rather expected that. Dollar uptrend remains intact, and will remain intact as long as it holds above 79.50. Don't count the dollar dead yet.

STOCKS had a banner day. The Dow packed in 249.76 points to close at 11,255.78. It has returned to the 11,250 resistance that has foiled it in the past. S&P500 picked up 25.52 points to close at 1,206.07. This is a sucker's game; stay away from stocks, unless you are a perennial winner at shell games.

On this day in 1835 Hans Christian Andersen published his first book of fairy tales. It was entitled, "Dow 36,000, or Why the Stock Market Must Rise Forever."

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.