Monday, March 19, 2012

Gold Price Broke Through $1,660 Closing at $1,666.90

Gold Price Close Today : 1666.90
Change : 11.40 or 0.69%

Silver Price Close Today : 3292.60
Change : 35.30 cents or 1.08%

Gold Silver Ratio Today : 50.626
Change : -0.199 or -0.39%

Silver Gold Ratio Today : 0.01975
Change : 0.000077 or 0.39%

Platinum Price Close Today : 1677.90
Change : 5.20 or 0.31%

Palladium Price Close Today : 706.50
Change : 8.70 or 1.25%

S&P 500 : 1,409.75
Change : 5.58 or 0.40%

Dow In GOLD$ : $164.18
Change : $ (1.03) or -0.62%

Dow in GOLD oz : 7.942
Change : -0.050 or -0.62%

Dow in SILVER oz : 402.09
Change : -4.16 or -1.02%

Dow Industrial : 13,239.13
Change : 6.51 or 0.05%

US Dollar Index : 79.43
Change : 0.332 or 0.42%

GOLD PRICE and SILVER PRICE kept on recovering today. Silver added 35.3c to close just under 3307c at 3292.6. Gold broke through $1,660 and added $11.40 to end at $1,666.90.

Five day chart shows that since Wednesday gold has traced out a slow uptrend with higher lows and higher highs. Now gold has bumped its head against the downtrend line from the 29 February high, and the 200 DMA also stands at $1,680.76. Should gold break through them both, especially on the first try, it will scoot.

By the way, Gold has formed another falling wedge, and y'all recall that wedges always break out the OPPOSITE direction from the way they point.

The GOLD PRICE is trading out into the point of that wedge, and something will break soon, probably this week, up or down. Time for lower lows is rapidly draining away.

You know, that SILVER has already made a correction greater than 50%. The 300 and 200 DMAs are kissing, which sometimes marks an upward turning point. If silver should close above 3450c, stop waiting and buy. Today it hit the 50 DMA and stopped, but looks strong still. Can't call a bottom, though, until silver confirms a bottom some way.

If the US dollar index was my only friend, I'd shoot myself. Treacherous doesn't begin to compass it. Friday and in European trading early today the dollar was plumb -- and I mean plumb -- flat. Right on the bell at 10:30 New York time the dollar index fell off a cliff at 79.75, painted a pennant half way down, then resumed plunging to 79.35.

Today's plunge broke the 50 DMA (79.63) but trading now at 79.434 (down 33.2 or 0.43%) the dollar index has not crossed below its 20 DMA (79.36).

Although the dollar index rose above its last low on this current move, if it stops here it will only confirm a downtrend. Looking at today's action, the chart has not been fractured, and dollar could continue rising. But if it falls much below that 79.36, it will probably revisit 78.50.

Like a bad child when his mama's sick, the Euro took this occasion to run hog wild. Gained 0.48% to $1.3242.

The Japanese yen today closed just where it was on Friday, 120.01c/Y00 (Y83.33/US$1). Yen has definitely turned, though, after a 119.14c low.

Sometimes I get knotted up because I can't explain to people why I won't recommend stocks. Today I went to an inflation calculator for an example. Dow topped in January 2000 at 11,722. Corrected for inflation, just to be at the same level the Dow would need to be at 15,500. BWDIK? I'm just a natural born fool from Tennessee.

That sort of casts another perspective on today's stock action. Dow gained a grandiloquent 6.51 (0.05%) to 13,239.13. S&P500 rose 5.58 (0.4%) to 1,409.75. When it falls, it will drop like a plum bob out of a C130 cargo plane at 25,000 feet.

Tomorrow my bionic wife has to have a cataract- clouded lens removed from her eye and replaced. She has worn glasses since she was 8, but after this replacement and another a week later, she will only need glasses for reading. I would deeply appreciate y'all praying for success and safety in her surgery. Thanks in advance for your prayers.

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

- Franklin Sanders, The Moneychanger

© 2012, 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 bubble has burst, primary trend down.

WARNING AND DISCLAIMER. 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 short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.