Gold Price Close Today : 1413.40
Change : 12.90 or 0.9%
Silver Price Close Today : 33.298
Change : 0.436 cents or 1.3%
Gold Silver Ratio Today : 42.45
Change : -0.171 or -0.4%
Silver Gold Ratio Today : 0.02356
Change : 0.000094 or 0.4%
Platinum Price Close Today : 1783.40
Change : -3.60 or -0.2%
Palladium Price Close Today : 777.70
Change : -26.80 or -3.3%
S&P 500 : 1,307.40
Change : -8.04 or -0.6%
Dow In GOLD$ : $177.05
Change : $ (3.19) or -1.8%
Dow in GOLD oz : 8.565
Change : -0.154 or -1.8%
Dow in SILVER oz : 363.56
Change : -3.26 or -0.9%
Dow Industrial : 12,105.78
Change : -107.01 or -0.9%
US Dollar Index : 77.38
Change : -3.880 or -4.8%
The GOLD PRICE closed today at $1,413.40, rising another 12.90. Gold has gained $25.20 since its Friday close, and stands less than $10 below its all time high of $1,422.60 (3 January 2011).
The place where the nitric acid of truth will hit the mystery metal of this rally comes at gold's last high. SILVER has made new highs in this move, but gold has not. If it falters at $1,422 then this party is over and the cops have just pulled up outside. If gold sails through $1,422 then gold will run wilder than ever, with silver alongside. If gold clears $1,422 (needs to get to $1,451 to exceed old high by a safe 2%), the targets that move implies are so huge that I don't even want to mention them to y'all cause you'll think I'm crazy.
Both the GOLD PRICE and SILVER PRICE appeared to have completed a low degree correction yesterday, and both began climbing again today. Silver's high Comex close came today (another new high) at 3329.8c, up 43.6c from yesterday. Silver's running mad as a weasel with his tail on fire. Looking at the ancient charts -- brush the dust of that, will 'ya?-- there is a squiggle, and not much of a squiggle, of resistance/support at 3450c and at 3950c. Not much guidance there, but leave it at this: 3500c is in silver's sights.
Finally, let me get out my hose and sprinkle all y'all down with a little more ice-water. Gold, and especially silver are levitating, rising straight up. Don't get used to this, friends, cause it ain't normal. It's fun while it lasts, and I love the music, but when it ends it ends all of a sudden, faster than quicksilver falls thru a sifter. So keep you flincher flinched, just in case the music ends soon. Meanwhile, we just enjoy the dance.
By the way, I did mention, didn't I, that silver could rise to 4000c and the GOLD/SILVER RATIO could drop to 38? I can't remember a thing.
Sorry I missed y'all yesterday, but I was finishing up my monthly Moneychanger newsletter. Paid subscribers can pick it up now at www.the-moneychanger.com.
My bewilderment continues, a tug of war between the forces and signs for higher prices, and the forces of gravity.
Against the silver and gold rally continuing are the blows platinum and palladium have taken in the last few days. More, stocks have lost 300 points in two days. That has to make silver feel heavy. Also, there was that leap to new high territory on Monday, a holiday in the US. Was that leap genuine, or should be discount it because the mammoth US market was closed? Silver reached 3433c!
But these are all niggling quibbles compared to the silver and gold charts, which still point powerfully upward. But more of that anon. Let us first cast our gaze upon the scrofulous US dollar.
Today the dollar nixed by upside-down head and shoulders reversal pattern by dipping and closing below 77.50. Dollar lost 38.8 basis points today to close at 77.38. It has fallen below its 20 DMA (77.90) below the last low, MACD is pointing lower. Euro also is above its 20 DMA headed for its last high at 1.3841 (closed today at 1.3749). Next backstop for dollar is last low at 76.88.
STOCKS have been whipped hard with a barbed wire scourge. Dow has lost 285.47 points the last two days, 107.01 of it today to perch finally at 12,105.78. S&P500 has lost 35.61 points, and today lost 8.04 and finally stopped rolling downhill at 1,307.40.
I've been telling y'all that stocks were forming a bearish rising wedge. Under that wedge there is only -- air. Space. No trampolines or tarpaulins to break the fall. It appears that the Dow has plunged through that wedge's lower boundary line, which will accelerate the plunge. HOWEVER, the Dow might bounce off round number support -- indeed, appears to have done so today -- at 12,000. I believe that this is the definitive break in stocks.
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.