Thursday, March 03, 2011

Unless The Silver and Gold Price Crash Through Their Lower Supports, They Will Keep On Rallying

Gold Price Close Today : 1416.00
Change : (21.20) or -1.5%

Silver Price Close Today : 34.333
Change : (0.512) cents or -1.5%

Gold Silver Ratio Today : 41.24
Change : -0.002 or 0.0%

Silver Gold Ratio Today : 0.02425
Change : 0.000001 or 0.0%

Platinum Price Close Today : 1827.90
Change : -12.30 or -0.7%

Palladium Price Close Today : 813.15
Change : -3.10 or -0.4%

S&P 500 : 1,330.97
Change : 22.53 or 1.7%

Dow In GOLD$ : $178.95
Change : $ 5.41 or 3.1%

Dow in GOLD oz : 8.657
Change : 0.262 or 3.1%

Dow in SILVER oz : 357.04
Change : 5.63 or 1.6%

Dow Industrial : 12,258.20
Change : 191.40 or 1.6%

US Dollar Index : 77.02
Change : 0.131 or 0.2%

Well, yesterday I was a mite stingy with my allowance for the GOLD PRICE to fall today. Instead of stopping at $1,422 gold today fell $21.20 all the way to $1,416.

Now 'tis always a dangerous practice to change a target. It's like shooting skeet while running through a newly plowed field, and you're liable to shoot yourself in the foot or someplace else. HOWEVER, today's retreat to that second line of support at $1,415 is not bad performance. Low today was $1,409.90.

Here we are facing another fork in the road, that lead to two different terrains, one into the hills, the other into the lowlands. First fork, leading to the lowlands, means that gold simply could not punch through the old high at $1,422 more than a few dollars, and has fallen back, preparing to fall further yet. We'll know gold has taken this route if it falls under $1,405 - $1,400.

The other fork leads up into the mountains. Gold will attack that $1,422 gate again, break through that and the last high, then confirm by closing above $1,450.50, that is, 2% above the last close.

Having warned y'all and stuck that burr under your saddle, I add that most likely gold is headed into the mountains, taking silver with it.

The SILVER PRICE gave back 51.2c on Comex to close the day there at 3433.3c. The fall began at midnight Eastern time, and touched as low as 3404c, then closed well above that. 3360c is the next resistance, but if this is nothing more than a minor correction, silver shouldn't reach that level, but ought to hold 3400c.

Unless silver and gold crash through those lower support boundaries, they will keep on rallying.

US DOLLAR INDEX only confirmed today that it's a low-life, headed for a low-life dive. Dropped 0.23% or 18.1 basis points to 76.49, on its way to 75.60 or 76.

STOCKS rallied today, but only to the 50% correction point. Dow grabbed 191.40 points to close at 12,258.20 and SYP500 rose 22.53 to 1,330.97. Lower prices await.

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.