Wednesday, January 26, 2011

Gold Price Jumped $11.00 in the After Market to Meet the $1,345 Resistance

Gold Price Close Today : 1333.00
Change : 0.70 or 0.1%

Silver Price Close Today : 27.132
Change : 0.321 cents or 1.2%

Gold Silver Ratio Today : 49.13
Change : -0.562 or -1.1%

Silver Gold Ratio Today : 0.02035
Change : 0.000230 or 1.1%

Platinum Price Close Today : 1811.60
Change : -14.90 or -0.8%

Palladium Price Close Today : 813.00
Change : -5.05 or -0.6%

S&P 500 : 1,296.63
Change : 5.45 or 0.4%

Dow In GOLD$ : $185.87
Change : $ 0.05 or 0.0%

Dow in GOLD oz : 8.991
Change : 0.002 or 0.0%

Dow in SILVER oz : 441.75
Change : 0.25 or 0.1%

Dow Industrial : 11,985.44
Change : 8.25 or 0.1%

US Dollar Index : 77.76
Change : -0.242 or -0.3%

The GOLD PRICE today rose a meager 70 cents by Comex close at $1,333.00, but right after the close somebody gave meth to the entire market, and it jumped up $11.00, to reach once more the threshold at $1,345 resistance.

The SILVER PRICE rose a respectable 32.1c to close at 2713.2c, bringing it to the barrier at 2760c. This was a good bounce off yesterday's 2650, but leaves silver in limbo, hanging between 2800c resistance and 2650c support. My inclination is to expect a couple day's rise, followed by more downside. Premiums on 90% silver coin is rising, rising, and spread is narrowing, which points to higher prices. However, time and price drop from the 3 January peak don't seem great enough yet to qualify as a bottom.

But on any given day, I have a 50% chance of being right, and the person opposite me has a 50% chance. I just have to try to hold on to what the historical statistics and the chart patterns seem to say.

Let's see if silver can close above 2800c and gold above $1,445 tomorrow.

US DOLLAR INDEX dropped again, 24.2 basis points to end up at 77.76. Its fall's momentum is slowing, and forming a falling wedge, which presages an upward break. However, MACD and RSI remain pointed firmly earthward. Could get a turn any time, or no turn at all, but that wedge argues something will happen soon.

STOCKS rose today, Dow up 8.25 to 11,985.44 and the SY_500 to 1,296.63, up 5.45.

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.