Monday, June 20, 2011

Gold Price Today Made an all Time High Against the British Pound

Gold Price Close Today : 1541.50
Change : 2.90 or 0.2%

Silver Price Close Today : 36.065
Change : 0.326 or 0.9%

Gold Silver Ratio Today : 42.74
Change : -0.309 or -0.7%

Silver Gold Ratio Today : 0.02340
Change : 0.000168 or 0.7%

Platinum Price Close Today : 1730.50
Change : -26.50 or -1.5%

Palladium Price Close Today : 747.55
Change : 3.05 or 0.4%

S&P 500 : 1,278.36
Change : 6.86 or 0.5%

Dow In GOLD$ : $162.00
Change : $ 0.73 or 0.5%

Dow in GOLD oz : 7.837
Change : 0.035 or 0.5%

Dow in SILVER oz : 334.96
Change : -0.93 or -0.3%

Dow Industrial : 12,080.38Link
Change : 76.02 or 0.6%

US Dollar Index : 75.01
Change : -0.021 or 0.0%

Scratching my head over gold. It's easy for markets to benumb your senses and lull you into a fatal complacency. Thus you might overlook or dismiss that gold today made an all time high against the British pound at £950. Gold's on a tear against the pound. Against the Euro gold stands at E1076 versus the all time high of E1083. Not far.

On Comex the GOLD PRICE rose 2.90 to $1,541.50, conquering at long last the $1,540 level. Today it reached $1,547.05, but only on a spike about 9:30 a.m. NY time, then just as quickly dropped back to oscillate above and beneath 1,540. Suspicious soul that I am, I expect the same NGM fighting to keep the dollar down and the euro up are struggling to keep gold from building any steam.

Yet laying aside my paranoia, I can easily allow that the longer term gold chart depicts a market destined to make one more dip before completing its correction. A two-day close above $1,575 would gainsay that expectation, and the GOLD PRICE will have to close below $1,510 to confirm it is turning down. Momentum indicators are equivocal, so there's no help from that quarter. Seasonality is another consideration, and it points down.

Right, I know, I sound like a government economist: "On the one hand . . . On the other hand . . ."

Last two days have blocked the SILVER PRICE at 3615c, but failed to drive silver below 3490 - 3520. Yet silver remains in a slight downtrend, bounded by 3850c on the top and 3473c on the bottom. It's a flat trading range, and until silver breaks above 3850c or below 3350c it's all just noise.

Sorry, folks, I'm not a politician, so when I have no answer, I say, "I don't know." That may disappoint those who believe I have a crystal ball, but it's much easier for me to remember the truth.

It feels as if everybody has gone away on vacation and left off trading. Yet beneath all this sizzles the fuse of Greece's government default. By the way, the pay off in that game was announced today: Greece will sell of scads of government owned enterprises. May I speculate that they will go for pennies on the dollar, and the ultimate owners will not be Greek, but their names will end with "*-insider"? The game will be complete once the jackals get over the goal line with all those bargain assets in their bag.

Let us begin our meditation with stocks. They rose today, modestly, and not nearly enough to escape ambiguity. Anything under Dow 12,100 speaks out of both sides of its mouth.

Dow closed up 76.02 at 12,080.38 while the S&P 500 rose 6.86 to 1,278.36.

On the bright side is the MACD turning up as if it means to rise. 20 day moving average lies far above at 12,175, and stocks need to close thereabove to confirm they are indeed turning up.

All this is odd, as summertime is normally dead for stocks, hence the proverb, "Sell in May and go away." Against gold stocks are making no headway, yet, but it is conceivable they might be turning up.

It won't matter whether stocks rally or not, it will merely become one more act in a drama of dashed hopes. Stocks remain the stinkweed in the Great Investment Bouquet.

Yes, yes, I believe this. Financial panic threatens Europe and the euro, and the US dollar sinks today. Sure, I believe that. I believe also in Santa Claus, the Tooth Fairy, The Easter Bunny, the benevolence of government, and the honesty of currency markets -- but not so much that last one.

Technically the US dollar index has carved out a double bottom about 74.90, so should continue advancing or at least not fall further as long as it holds that line.

The euro dropped a tee-tiny amount today, .03%, and floateth just beneath its 20 DMA. Bogus, thy name is euro! Japanese NGM are doing their job, keeping the US dollar from rising to more than 125c/Y100 (Y80/$).

I have now lost count of the emails I have answered about the changes that Zero Hedge pointed out that the Dodd-Frank bill mandates in trading silver and gold over the counter come 15 July.

NOW HEAR THIS: the change applies only to margined or leveraged contracts, not to physical metals such as we trade in. This change does NOT mean you will no longer be able to trade in physical silver and gold. It might, however, diminish hedge fund participation for reasons too obscure explain.

And this incident arouses another, deeper question: At what point will y'all say no? When? Have you thought about it? When they come drag you away to prison? Your wife? When they take away your children? When they steal your pension? At what point will y'all begin to say NO to the government? In "Gulag Archipelago" Solzhenitsyn wonders what would have happened if, when the GPU came to arrest folks at night, instead of quivering behind their apartment doors Russians had met them in the stairwell with iron pipes. How long would the arrests have continued, had they done that?

I reckon every man has a different breaking point, but if you have no breaking point are you still a man?

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.