Monday, December 20, 2010

The Gold Price Rose on Comex Today $6.90 to $1,385.50 Fine, That's All it Needed to Do

Gold Price Close Today : 1385.50
Change : 6.90 or 0.5%

Silver Price Close Today : 29.335
Change : 0.222 cents or 0.8%

Gold Silver Ratio Today : 47.23
Change : -0.123 or -0.3%

Silver Gold Ratio Today : 0.02117
Change : 0.000055 or 0.3%

Platinum Price Close Today : 1710.90
Change : 13.80 or 0.8%

Palladium Price Close Today : 742.00
Change : -5.20 or -0.7%

S&P 500 : 1,247.08
Change : 3.17 or 0.3%

Dow In GOLD$ : $171.26
Change : $ (1.05) or -0.6%

Dow in GOLD oz : 8.284
Change : -0.051 or -0.6%

Dow in SILVER oz : 391.28
Change : -0.50 or -0.1%

Dow Industrial : 11,478.13
Change : -13.78 or -0.1%

US Dollar Index : 80.62
Change : 14.860 or 22.6%

The GOLD PRICE rose on Comex today $6.90 to $1,385.50 Fine, that's all it needed to do. On the five day chart that leaves behind double V-bottoms on Thursday and Friday, a sort of shoulder last Wednesday with a bottom about $1,375, and a matching shoulder traced out today with a V-bottom of its own at $1,375. Gold has done exactly what it ought to have done. Resistance lies a little above where we are right now, maybe $1,370. Tomorrow maybe gold pierces that, maybe not. Maybe trades sideways another day. Okay still.

The SILVER PRICE on Comex rose a respectable 22.2c to close at 2933.5c. Silver has also built a sort of head-and-shouldersy pattern typical of bottoms. Now I'd like to see it trade sideways a bit in a long narrow triangle. Overhead resistance closest in the road is 2940c.

So far silver and gold are behaving consistently with my interpretation of bottoms last Thursday. Closes below 2840c and $1,362 would gainsay that.

The US DOLLAR INDEX today solidified its gains by packing in 14.86 basis points and overcoming that 80.40 resistance. Dollar is on its way higher. Don't stand in its way arguing with it.

Also, don't confuse what this means. It is no more than the color rising in a dying man's cheeks due to his fever. It ain't a sign of health, merely the progression of the disease.

STOCKS made a weird turn again today. All the indices closed marginally higher while the Dow dropped 13.768 points to 11,478.13. On the other hand the S&P 4500 rose 3.17 to 1,247.08. Both sides cannot be right.

Somebody was ragging me for missing the "great rally" in stocks last year and a half. Look, compare, consider, how much better we have done with silver. Compare also that stocks are in a bear market rally, rallying against the trend and that only with periodic infusions of buying power from the Nice Government Men. SILVER and GOLD, on the other hand, are rallying in bull market. Stocks will end in tears and hand-wringing, silver and gold in joy and higher prices. Can't see it yet, but it's already written in the books.

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

- Franklin Sanders, The Moneychanger
Phone: (888) 218-9226 or (931) 766-6066

© 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.