Wednesday, March 30, 2011

Until the Gold Price Closes Above that Last High, it Remains in a Downtrend

Gold Price Close Today : 1423.80
Change : 7.60 or 0.5%

Silver Price Close Today : 37.501
Change : 0.517 cents or 1.4%

Gold Silver Ratio Today : 37.97
Change : -0.325 or -0.8%

Silver Gold Ratio Today : 0.02634
Change : 0.000224 or 0.9%

Platinum Price Close Today : 1770.50
Change : 27.80 or 1.6%

Palladium Price Close Today : 751.30
Change : -1.35 or -0.2%

S&P 500 : 1,328.26
Change : 8.82 or 0.7%

Dow In GOLD$ : $179.32
Change : $ 0.10 or 0.1%

Dow in GOLD oz : 8.674
Change : 0.005 or 0.1%

Dow in SILVER oz : 329.34
Change : 1.86 or 0.6%

Dow Industrial : 12,350.61
Change : 71.60 or 0.6%

US Dollar Index : 76.09
Change : 0.157 or 0.2%

The GOLD PRICE rose a respectable $7.60 today to $1,423.80, but not enough to resolve bated-breath doubts. Until the gold price closes above that last high, it remains in a downtrend. Today it only pushed up against the $1,425 ceiling, but didn't break through. It's built firm support at $1,410, but "holding" is not "advancing," as Gen. George Patton might say. The gold price needs to gain ground tomorrow, and probably will.

A close above $1,438 turns gold up, a close below $1,410 turns it down. This rally will run further.

The SILVER PRICE rose 51.7c to 3750.1c, a new high close but not a new intraday high. That came at 3814c four days ago. UNLESS silver trades below 3640c, tomorrow ought to be another up day with silver progressing toward 4400c.

Party could end any time, or it could rock on quite some time. Silver shows no signs of slowing down. Ratio hit a new low today, 38.002.

Right now I would trade gold for silver, still, because that reaction will eventually come.

The euro bounced up off its 20 day moving average and who knows, maybe it will suck all the money in the world into itself. Then again, maybe not. It reached 1.4125 today versus the last (7 days ago) 1.4244 high. Strong euro wears on the dollar of course, but the dollar is sick and sorry enough without any help from the Euro. Couldn't hold on above its 20 DMA (76.25) today and now is trading 15.7 basis points lighter than yesterday at 76.092. Dollar supporters find themselves making excuses like, "Well, yes, it is ugly and scabrous and warty, but it's made in America!" Dollar may have turned up but has as much proving to do as a drunk husband coming home at 3:30 a.m.

STOCKS showed strength today. Dow rose 71.6 to 12,350.61, only about 50 points beneath the February high. S&P500 rose to 1,328.26, up 8.82 points but below the 1,344.07 February intraday high.

About stocks I feel the same way all those good folks from Arkansas felt when the rest of the country elected Bill and Hillary president. The Arkansans knew what the country had fallen into, but they just wouldn't listen.

ANOTHER SOUTHERN FIRST: On this day in 1842 Dr. Crawford Long of Georgia used ether anesthesia for the first time.

On this day in 1870 Texas became the last Confederate state re-admitted to the union. Mmmmm. Wonder what they think about that today.

MILESTONES OF AMERICAN CULTURE: On this day in 1964 "Jeopardy" premiered on US TV.

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

- Franklin Sanders, The Moneychanger

© 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.