Tuesday, July 26, 2011

The Gold Price Keeps on Ratcheting Up Day by Day

Gold Price Close Today : 1616.80
Change : 4.60 or 0.3%

Silver Price Close Today : 40.691
Change : 0.337 or 0.8%

Gold Silver Ratio Today : 39.73
Change : -0.218 or -0.5%

Silver Gold Ratio Today : 0.02517
Change : 0.000137 or 0.5%

Platinum Price Close Today : 1804.90
Change : 14.30 or 0.8%

Palladium Price Close Today : 838.65
Change : 31.70 or 3.9%

S&P 500 : 1,331.94
Change : -5.49 or -0.4%

Dow In GOLD$ : $159.84
Change : $ (1.61) or -1.0%

Dow in GOLD oz : 7.732
Change : -0.078 or -1.0%

Dow in SILVER oz : 307.23
Change : -4.83 or -1.5%

Dow Industrial : 12,501.30
Change : -91.50 or -0.7%

US Dollar Index : 73.53
Change : -0.537 or -0.7%

Sorry I missed y'all yesterday. I was finishing my monthly Moneychanger newsletter. Paid subscribers can log in at www.the-moneychanger.com for the electronic version.

Ever seen someone who will stand and argue with a road sign? I know somebody like that, and standing in the way of gold and silver right now is precisely standing and arguing with a road sign.

The GOLD PRICE keeps on ratcheting up day by day. Now $1,620 is the barrier (high today was $1,620.10), and $1,607 has become support.

The GOLD PRICE will probably hit $1,650 before this stops. Already it is overbought, but can grow more so. Comex gold gained $4.60 to $1,616.80.

The SILVER PRICE keeps advancing, too. Comex closing found silver up 33.7c at 4069.1c. 4100c is now the Great Blockade. Silver's high today came at 4095c. It is tugging at the leash. It will break through 4100c and run farther still.

The SILVER PRICE has the bit in its teeth and will keep on running. Don't get caught short silver here.

Since the US dollar index broke thru its uptrend line, it surprises no one that it fell 53.7 basis points today to 73.527. This trashed support at 74 and sets the buck on the skids for 72.70 before it begins rallying. Today took it below the 20 DMA (74.89) and back to the last low. More downside coming.

Euro today gapped up from below 1.4400 to 1.4511, up 0.95%. That might be a breakout over the downtrend line and lead to 1.4700 to 1.4950. What? It makes no economic sense! Why, who are you to talk about economic sense in a system set up by Salvador Dali?

Yen also continues to climb. Today it's at 128.35c/Y100 (Y77.91/$), almost back to the 128.79 earthquake peak in March.

You know, hard as it is to fathom, it may be that the world actually believes that something will happen if the debt ceiling isn't lifted. Mercy -- they can't be that gullible, can they? Surely they know that debt ceiling will be lifted -- don't they?

STOCKS are tumbling against gold, and not doing too killing well against the dollar. Dow today closed at 12,501.30, down 91.5 and the S&P at 1,331.94, down 5.49.

Dow today fell below its 20 dma (12,521) first warning of a downturn. I keep reading technicians I respect talking about another leg up in stocks, but it's not materializing.

Hold on to your stocks. They're your anchor to poverty.

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.

Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.