Wednesday, July 27, 2011

The Gold Price Today Hit a New Intraday High of $1,628.55

Gold Price Close Today : 1615.10
Change : (1.70) or -0.1%

Silver Price Close Today : 40.553
Change : (0.138) or -0.3%

Gold Silver Ratio Today : 39.83
Change : 0.093 or 0.2%

Silver Gold Ratio Today : 0.02511
Change : -0.000059 or -0.2%

Platinum Price Close Today : 1789.50
Change : -15.00 or -0.8%

Palladium Price Close Today : 826.05
Change : -12.60 or -1.5%

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

Dow In GOLD$ : $160.01
Change : $ (0.99) or -0.6%

Dow in GOLD oz : 7.740
Change : -0.048 or -0.6%

Dow in SILVER oz : 308.27
Change : -1.20 or -0.4%

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

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

Tomorrow and Friday I will be travelling so will not post any commentaries. However, I will return on Monday, God willing.

Sometimes it's not the BIG things that bother you, but the concatenation of little things. Like working outside and noticing more and more flies, then a little whiff of corruption on the air. Buzzards cruising overhead. Next thing you know, you discover a body.

So today. Here is the pile of stuff insignificant in each item perhaps, but together adding a strange smell to the air:

…wholesale discount on US 90% coin jumped yesterday a nickel and today another nickel, from minus 120 cents to minus 130c in a day. That premium is VERY sensitive to the mood in the silver market. When the discount lessens, the market is looking up. When the discount grows, trouble may be brewing.

…Yesterday platinum and palladium made great leaps ($24.30 and $31.70) but today disgorged much of those gains (-15 and -12.60). Not helpful.

. . . Gold and silver have both stalled. May be only a routine 2-3 day correction, or . . .

. . . Debt ceiling expiry looms, so that's getting closer and closer to resolution, and when 'tis resolved, will rob the metals of that driver.

. . . US dollar bounded up of the trampoline of a new low yesterday (73.527, down 0.537) to recapture all of that loss and then some, gaining 59.3 basis points to 74.067. Chart looks like a sort of spike bottom. Whether a feint or not, if dollar can stay above 74, it's fall has ended.

Euro disappointed all its cheerleaders today by falling back to fill yesterday's gap up and nearing its 50 dma (1.4315). Unless the euro can better yesterday's 1.4526 high, 'tis safe to assume it met the downtrend line's resistance and failed. Yen remains near earthquake highs, closing today at 128.23c per Y100 (Y77.98/$).

As I am blind to the charms of ballet, so I am blind to the seduction of stocks. What do they have that other people see? Today the Dow obliged all its fans by falling 198.75 points (1.59%) to 12,302.55, once again at critical 12,300 support. It's below its 20 dma (12,527) and now its 50dma (12,334). The MACD and RSI have turned firmly down. Dear friends, none of this points upward.

As the Sirens were to Ulysses, so are stocks to today's investors, but unhappily they have not stopped their ears or lashed themselves to the mast.

The GOLD PRICE today hit a new intraday high of $1,628.55 (I told y'all you'd see $1,625) but fell off of that to $1,609.78. Closed Comex at $1,615.10, down $1.70. Technically I recognize that gold made the first half of a key reversal today (new high with lower close), but that must be completed with a lower close again tomorrow.

GOLD must remain above $1,605 or turn down. In spite of all the flies buzzing around my head, I believe this is no more than a short correction and that the uptrend will gain yet more before 2 August when the world ends. Well, when all the Chicken Littles who believe we can't feed ourselves or blow our noses without Government Intervention expect the world to end. I don't, and even if it does, I'm old enough and mean enough to buy me a tin bill and make a living pecking with the chickens.

SILVER is in that same boat with GOLD, posting first half of a key reversal today, new high at 4142c but lower close, down 13.8c at 4055.3c. No omen unless silver closes lower than 4055.3c tomorrow. 4100c proving tougher to penetrate than I expected. Remember that if silver does hold on here, virtually no resistance lies between 4100c and 4980.

I'm holding my breath, but expecting higher SILVER PRICES tomorrow. If silver faints, 3900c is critical must hold line.

On 27 July 1694 the Bank of England received its royal charter and began drinking the nation's blood. Within two years a run on the bank had developed. In 50 years or so the bank owned a public debt in the amount (as I remember) of nearly 50 million pounds sterling, about 11.8 million ounces of gold. Understand that debt as an advance claim on the nation's production -- FOREVER. And of course, our own Federal Reserve keeps up the healthful tradition of the Old Lady of Threadneedle street.

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.