Wednesday, March 28, 2012

Gold Price Lost $27 Today to Close at $1,657.90 With a Low of $1,656.70

Gold Price Close Today : 1657.90
Change : (27.00) or -1.60%

Silver Price Close Today : 3181.60
Change : 78.5 cents or -2.41%

Gold Silver Ratio Today : 52.109
Change : 0.427 or 0.83%

Silver Gold Ratio Today : 0.01919
Change : -0.000158 or -0.82%

Platinum Price Close Today : 1635.50
Change : -18.30 or -1.11%

Palladium Price Close Today : 649.15
Change : -9.20 or -1.40%

S&P 500 : 1,405.54
Change : -6.98 or -0.49%

Dow In GOLD$ : $163.67
Change : $ 1.76 or 1.09%

Dow in GOLD oz : 7.917
Change : 0.085 or 1.09%

Dow in SILVER oz : 412.57
Change : 7.74 or 1.91%

Dow Industrial : 13,126.21
Change : -71.52 or -0.54%

US Dollar Index : 79.16
Change : 0.112 or 0.14%

GOLD PRICE was knocking on the $1,685 ceiling, tough resistance, and fell back to take a running start at breaking down that door. It would take a close below $1,630 to embarrass me. Oh, and I might be embarrassed, but I'll hold the cards in my hand, thanks very much, until that happens.

GOLD PRICE lost $27 today to close Comex $1,657.90, with a low posted at $1,656.70.

The SILVER PRICE lost 78.5c (2.4%) and ended at 3181.6c. No damage to the chart yet, and won't be unless silver closes below 3140c. If I was bullish on silver yesterday 78.5 cents higher, what do you think I am today, tail-tucked and head-hanging? Nope, more bullish still because I can buy it 78.5 cents lower. I believe the metals correction ended on 29 December 2011.

Y'all never forget this: the risk you sit is greater than the risk you run. Sitting makes sure of only one thing: you go nowhere. It SURE doesn't guarantee you don't make any mistakes.

Currencies were flat today, dollar up 11 basis points (0.14%) to 79.159, comatose. Euro went from 1.3318 yesterday to 1.3317. Only the yen gained a little, 0.41% to 120.72c (Y82.84), assuring us that it has turned.

So what news sent stocks down along with silver and gold? None I found, and besides news events tend to happen concurrently with changes markets are already making, not as causes. So what WITHIN those markets sent them down?

The Dow lost 71.52 (0.5%) to close at 13,126.21. S&P500 lost 6.98 (.5%) to close 1,405.54. On the five day chart you see a gigantic leap up on Monday, through 13,100 to 13,250, then erosion Tuesday and Wednesday. Chart looks like a market that has rolled over preparatory to jumping off the bed. Dow must hold 13,075 or risk tanking when it breaks through support.

Okay, Moneychanger, so why doesn't the gold market look the same way? Five day chart isn't all that different.

Ahh, but the CONTEXT is. Stocks have been advancing since October dawned, trading into a tightening upward wedge, which pictures a market running out of buyers.

Gold, on the other hand, has been correcting since September died, then in February broke upward through the through the downtrend line, peaked, then traded back to that downtrend line for a Final Kiss Good-bye: a market running out of sellers.

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

- Franklin Sanders, The Moneychanger
10:00am-5:00pm CST, Monday-Friday

© 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.