Gold Price Close Today : 1659.60
Change : 18.20 or 1.11%
Silver Price Close Today : 31.207
Change : 0.851 cents or 2.80%
Gold Silver Ratio Today : 53.180
Change : -0.891 or -1.65%
Silver Gold Ratio Today : 0.01880
Change : 0.000310 or 1.68%
Platinum Price Close Today : 1567.10
Change : 22.70 or 1.47%
Palladium Price Close Today : 671.90
Change : 13.65 or 2.07%
S&P 500 : 1,399.98
Change : 9.29 or 0.67%
Dow In GOLD$ : $164.48
Change : $ (0.37) or -0.23%
Dow in GOLD oz : 7.957
Change : -0.018 or -0.23%
Dow in SILVER oz : 423.13
Change : -8.11 or -1.88%
Dow Industrial : 13,204.62
Change : 113.90 or 0.87%
US Dollar Index : 78.93
Change : 0.070 or 0.09%
Yesterday I said that the GOLD PRICE drop to a new low for a move and sharp recovery showed strength. Shut my mouth if it didn't gain $18.20 today to dazzle the Comex with a $1,659.60 close, above $1,640 and $1,650 resistance. High touched $1,660.55, low never fell below $1,645.72.
Here's the good news and the bad news. Bad is that gold is forming a rising wedge, and could still drop down to the bottom boundary thereof, right now about $1,590. Good news is that the GOLD PRICE cracked that upper boundary today, but hold on! Won't confirm an upside breakout and rally until it closes ABOVE $1,683, resistance AND the 150 day moving average.
My darling SILVER leapt 85.1 cents today to clear 3100c and close Comex grinning at 3120.7c like a jackass eating sawbriars. That was close to the 3127c high, and a LONG ways from the 3064.4c low. Today's close landed silver slap on the upper boundary of the falling wedge. Bear in mind that silver must make good this escape by closing higher tomorrow, and might yet touch the other side of that falling wedge, now about 3000c.
It MAY BE that the SILVER PRICE and the GOLD PRICE today have opened the door to that rally we've awaited so long. Both must confirm with respectably higher closes tomorrow.
Sideways markets are tough to parse. When they seem just about to break out, they fall back. Often to the bottom of a long, narrowing triangle. I think that's what's taking place with stocks.
They rose today. That's why y'all are getting this lecture. Dow was up 113.9 (0.87%) to 13,204.62 and the S&P500 rose 9.29 (0.67%) to 1,399.98, one mouse burp away from 1,400. What meaneth this uproar?
Still appears to me stocks are painting a head and shoulders top, right now finishing the right and final shoulder. It would take a close above 13,300 to change my mind. This "rally" strikes me as bait for suckers.
Curioser still is the Dow in Gold Dollars (DiG$). This has formed a diamond since mid-March, which usually marks a top. For the past two weeks the DiG$ has skidded along atop its 20 DMA (now G$163.10 or 7.890 oz.) but never climbing higher than G$164.90 (7.977 oz).
Stability like that makes little sense. I mean, it won't stay there much longer. To escape the diamond upside the DiG$ must close above G$165.37 (8.000 oz) then quickly rise over G$168.12 (8.133 oz), the last high. More likely is that the DiG$ will fall out of the triangle gravity-ward when it bereaks G$160 (7.740 oz).
Lo! How are the mighty fallen! Tell it not in Gath, that the US dollar index today fell below 78 and now tradeth at 78.931. True, that's lower by only 7 basis points (a measly 0.09%), but it is painfully symbolic for the dollar. In aftermarket trading it's trying to rise, so maybe today marked the dollar's low. It better have, else it falls out of a long triangle and loses 300 basis points. Must hold 79.
The Euro went nowhere, closing today at $1.3221 against yesterday's $1.3225. Too little to count, call it unchanged. Yen gapped up -- sigh, again -- today to 123.51c, 0.37% (Y80.97/US$1). Never mind the theatrics, yen must climb above 124.54 even to raise a suspicion it is changing its downward trend.
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.