Wednesday, March 21, 2012

The Gold Price Rose $3.30 to close at $1,650 Must Break out Upside Through $1,670

Gold Price Close Today : 1650.00
Change : 3.30 or 0.20%

Silver Price Close Today : 3219.90
Change : 39.4 cents or 1.24%

Gold Silver Ratio Today : 51.244
Change : -0.531 or -1.03%

Silver Gold Ratio Today : 0.01951
Change : 0.000200 or 1.04%

Platinum Price Close Today : 1638.70
Change : -14.30 or -0.87%

Palladium Price Close Today : 684.80
Change : -8.25 or -1.19%

S&P 500 : 1,402.90
Change : -2.62 or -0.19%

Dow In GOLD$ : $164.43
Change : $ (0.88) or -0.54%

Dow in GOLD oz : 7.954
Change : -0.043 or -0.54%

Dow in SILVER oz : 407.61
Change : -6.48 or -1.57%

Dow Industrial : 13,124.62
Change : -45.57 or -0.35%

US Dollar Index : 79.62
Change : 0.260 or 0.33%

Nothing fruitful took place for the silver and
GOLD PRICE today. True, they rose a little, but not enough to alter the downtrend. The GOLD PRICE rose 3.30 to $1,650 and silver rose 39.4c to 3219.9c.

The GOLD/SILVER RATIO gives us a feeling of where we are and where we are headed. It keeps see-sawing upwards. Oh, it fell today from 51.775 to 51.244, but three days ago its was at 50.626.

The GOLD PRICE reached a little higher today at 1661.65 than yesterday's high at $1,657.80. Low came a little higher, too, at $1,647.08 against $1,641.90. Never mind, it's still range-bound trading. Must break out upside through $1,670, or down at at $1,640. Till then, range-bound trading is just noise. Meanwhile, gold remains below its 50 DMA ($1,705.43), 150 DMA ($1,711.55), and 200 DMA ($1,681.82). Can't argue that momentum points down.

On the longer term SILVER PRICE chart in the last six days silver has established a double bottom at 3162c - 3175c. To argue that will hold, I would point to the pattern of the correction since the February high, which has a down A-B-C completed look to it. But in spite of that, SILVER remains rangebound. Either it falls through 3180c to drop lower, or it rises above 3240c for higher prices. Meantime, we're just watching.

Abide patiently. Higher prices are coming once this correction ends.

My dear wife Susan was feeling pretty punk last night, but this morning she was dancing around and laughing like a little girl. With the lens replaced in only one eye due to a cataract, she can see! She has worn glasses since she was 8, and she's tickled pink. Thanks for your prayers.

For two days the dollar index has been vibrating up to down in a flat range from 79.80. Gained 26 basis points today and is now at 79.619. One has the feeling all interest in this market has died. Odd, since the United States seems bent on provoking Iran and through it another world war.

Euro looked a little flakey today, second day it has shown itself not equal to crossing above its 20 day moving average. Closed at $1.3211, down 0.11%, but really just dead in the water.

The yen today posted the first leg of a key reversal by breaking into new low territory but closing higher than yesterday. A close above today's 119.97c (Y83.35/US$1) tomorrow will complete that key reversal and turn the yen firmly up.

Stocks today rounded and fell further from that top they've been drawing. SAP fell 2.62 (0.19%) to 1,402.90 while the Dow fell 45.57 (0.36%) to close at 13,124.62. Y'all don't get too disappointed when it falls, because it will be only the first in a very long series of disappointments

Wait! I'd better stop saying such things. I am liable to get a visit from the Nice Government Men in the NOTSUA -- National Office to Suppress Un-American Activities.

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.