Gold Price Close Today : 1374.70
Change : 1.10 or 0.1%
Silver Price Close Today : 30.630
Change : (0.063) cents or -0.2%
Gold Silver Ratio Today : 44.88
Change : 0.128 or 0.3%
Silver Gold Ratio Today : 0.02228
Change : -0.000064 or -0.3%
Platinum Price Close Today : 1829.30
Change : -0.80 or 0.0%
Palladium Price Close Today : 840.65
Change : 3.05 or 0.4%
S&P 500 : 1,336.32
Change : 8.31 or 0.6%
Dow In GOLD$ : $184.78
Change : $ 0.80 or 0.4%
Dow in GOLD oz : 8.939
Change : 0.039 or 0.4%
Dow in SILVER oz : 401.18
Change : 2.02 or 0.5%
Dow Industrial : 12,288.17
Change : 61.53 or 0.5%
US Dollar Index : 78.25
Change : -0.324 or -0.4%
The GOLD PRICE spake out of both sides of its mouth today. Overnight it traded up to 1378, but when New York opened it traded down-up-down to $1,368.3 about 10:00 a.m. From there it staged an impulsive rally that reached $1,381.90 by 12:15, but just as sharply fell off and went limp around $1,375. After all that sound and fury, Comex closed up only $1.10 at $1,374.70.
Now that is not the first half of a key reversal (break into new high ground with a lower close), but it doesn't miss it by much. GOLD is also bumping right along its top Bollinger Band, which usually foretells a fall.
On the mitigating hand, $1,380 holds stiff resistance, and momentum indicators are positive and have plenty of room to rise.
If gold breaks through $1,380, it will sprint for the old high above $1,420. Yet the early harbingers whisper that tomorrow will be a down day.
The SILVER PRICE came under attack from the opening bell and was driven back to 3025c. From that depth it launched a heroic rally to 3097c, the very doorstep of 3100c and the last high, but it spent no time meditating there. It dropped back to 3055c by 1:00 and barely traded the rest of the day. On Comex it closed down 6.3c at 3063c.
Technically that is the first half of a key reversal, but must be confirmed confirmed by the second half, a lower close tomorrow.
Silver remains a scootch below its top Bollinger Band, but a little scootch. Relative Strength Indicator is working its way into nosebleed territory, but isn't quite there yet. Histogram looks to be rounding down, but but MACD has a plenty of room to rise.
All of which jargon says that SILVER PRICE had better clear 3100c tomorrow or pack a parachute.
Life ain't easy, is it? I reckon if it was, everybody would do it.
If you think we had an 18-wheeler load of bewilderment yesterday, wait till you run your eye over today.
First of all that old crack-head the US DOLLAR INDEX ran plumb crazy. Look at the five day chart: it looks like two W's drawn by a drunk. No pattern, no consistency. Dollar dropped below 78.50 today by 32.4 basis points and landed at 78.249. This is not the world's end, and doesn't gainsay the dollar's uptrend or upside-down head and shoulders reversal. But one wonders in vain why it would have made a higher high than yesterday's, along with a lower low. I thank heaven I am not in the pit trading dollars.
Okay, tomorrow: dollar index has walzed sideways and up and down quite enough, and must not close below 78. Otherwise, it will be calling for more downside.
Best argument for the dollar is the euro, which is locked in a confirmed and nasty downtrend.
Canceling out their downtrend of the past two days, stocks rose today, pushing the last high a bit higher. Today's peak came at 12,303.16, but the close backed off to 12,288.17, up 61.53. S&P also rose to 1,336.32, up 8.31. Could rise more, but I don't want to ride with it. Fall will hurt too much.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
Phone: (888) 218-9226 or (931) 766-6066
© 2011, 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.