Friday, April 27, 2012

The Gold Price Broke Out and is Moving Higher Closing up 1.3 Percent for the Week at $1,664

Gold Price Close Today : 1,664.00
Gold Price Close 20-Apr : 1,642.10
Change : 21.90 or 1.3%

Silver Price Close Today : 3134.7
Silver Price Close 20-Apr : 3164.4
Change : -29.70 or -0.9%

Gold Silver Ratio Today : 53.083
Gold Silver Ratio 20-Apr : 51.893
Change : 1.19 or 2.3%

Silver Gold Ratio : 0.01884
Silver Gold Ratio 20-Apr : 0.01927
Change : -0.00043 or -2.2%

Dow in Gold Dollars : $ 164.33
Dow in Gold Dollars 20-Apr : $ 164.02
Change : $ 0.31 or 0.2%

Dow in Gold Ounces : 7.950
Dow in Gold Ounces 20-Apr : 7.935
Change : 0.02 or 0.2%

Dow in Silver Ounces : 422.00
Dow in Silver Ounces 20-Apr : 411.75
Change : 10.25 or 2.5%

Dow Industrial : 13,228.31
Dow Industrial 20-Apr : 13,029.26
Change : 199.05 or 1.5%

S&P 500 : 1,403.36
S&P 500 20-Apr : 1,378.53
Change : 24.83 or 1.8%

US Dollar Index : 78.748
US Dollar Index 20-Apr : 79.144
Change : -0.396 or -0.5%

Platinum Price Close Today : 1,570.50
Platinum Price Close 20-Apr : 1,577.40
Change : -6.90 or -0.4%

Palladium Price Close Today : 681.60
Palladium Price Close 20-Apr : 675.00
Change : 6.60 or 1.0%

Overview of the silver and
GOLD PRICE this week says that they completed those falling wedges, made final bottoms for this move, and have begun moving higher.

GOLD PRICE today rose $4.40 to $1,664.00 while silver gained 14 cents to 3134.7c. Notice that this week (a) gold never closed below $1,630 and (b) silver spent only 3 days below 3100c.

Yesterday GOLD cracked the upper boundary of that falling wedge -- "broke out" -- and confirmed that today with a higher close. Yet once burned, twice shy, so I want to see gold clear $1,682 resistance to PROVE it has turned up, then keep marching right along and climb over that 200 DMA at $1,698.17. Looks good, but I'm holding my breath. Why? Because it still might drop back to the bottom boundary of that wedge, now about $1,600.

The SILVER PRICE was taken behind the bar and beaten so bad you'd have thought she couldn't stand up. Think again. 5 Day chart shows a spike bottom on Wednesday, followed by a surge through 3060c resistance, and a continuing advance clean to 3140c.

Today SILVER closed at 3134.7c, not far from the 3142c high.

On the longer term chart silver yesterday halted at the upper boundary of that falling wedge. Today she cleared it. In front of silver -- and needful to confirm a rally -- stands 3250c.

Appears that the SILVER and GOLD PRICE made their final lows this week for the correction that began off the March high. A lot of sideways frustration will likely follow, but trending upward. Big breakouts may not come till fall, but worst has passed.

Biggest winner for the week was the S&P500, up 1.8%, with gold not far behind at 1.3%. Not surprising, dollar index lost half a percent.

If this was any sort of sane world where everybody and his brother didn't have his thumb on the scale and his hand in the till, that US dollar index would have dropped like a big boy hit on the head with a large-size pipe wrench. Rather, it broke down from its two-month-a-building triangle and jes' sorta stumbled 40 basis points (0.51%) to 78.748, instead of dropping straight down like a low-flying mallard hit with #2 shot.

Where will this take the US dollar index? It has broken support stretching back to the late October low, so "lower" is the first answer. Second, there's an internal support line right about 78.50, beneath which lies air. Doesn't seem to be any particular reason -- that is, an announcement from the Bernancubus that he's going to debase the dollar faster -- for this slide, but maybe it's the NGM working together trying to float the euro.

Speaking of the euro, how'd you like to live in Spain, where admitted (Governments always lie) unemployment is 24.4% and half the folks under 25 have no jobs? Foreclosures rising, banks sinking, deficit booming. This saith not much for the euro's future. Today it rose 0.35% to 1.3253, which carries it only to the 32.8% correction level of its November - January drop. Yes, 'tis above its nested 20, 50, and 62 day moving averages, which points it higher, but if you put a .44 magnum to my head and asked me why, I reckon you'd just have to blow my brains out cause I could give you ne'er a reason.

Yen is on a tear, rose 1.04% today to 124.7c/Y100 (Y80.19/US$1). Climbing above that 124.5-ish level will send it flying, and I reckon y'all will see that.

Some of y'all may have marked that I NEVER have anything good to say about stocks, and I confess, that's no accident. Wake up! The US is mired to the wheel wells in depression, and the only thing government and the Fed can do is haul more barrels of water to thin the mud. Some few companies may prosper, but the vast majority of the US economy will keep on suffering because the Resplendent Ones Who Run Our Lives will not allow the economy to purge bad investments and bankrupt firms. mostly because their cronies own them.

More than that, stocks entered a primary downtrend in 2000, and will not significantly exceed that inflation-adjusted 11,722 high until the bear market ends, say 3 - 10 years hence.

At present the Dow Industrials have traced out a head and shoulders that may signal on a breather, a consolidation before moving higher, or a top. If the Dow can break through 13,300 -- IF -- then it might reach for 14,905 and the government and Wall Street shills will be singing sweet halleluiahs, but 'twill be the biggest bull trap of all time, for twill collapse thereafter to ignominious lows. Teeth will gnash, wailers will wail, hair will be pulled. If the Dow breaks say 12,100 sooner, then the gnashing, wailing, and hair-pulling will start sooner. No matter, either way the gnashing, etc. will come. Wait for it, it will come.

Today the Dow rose, with great labor, to 13,228.31, up 23.69 (0.18%) while the S&P500 climbed over 1,400 to 1,403.36 (up 3.38 or 0.24%).

Y'all enjoy your weekend!

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. No, I don't.