Tuesday, April 17, 2012

Gold Price was Driven Down to $1,634.88 but Snapped Back to the Day's High Holding Above $1,650 in After Market

Gold Price Close Today : 1650.30
Change : 1.60 or 0.10%

Silver Price Close Today : 3166.50
Change : 30.1 cents or 0.96%

Gold Silver Ratio Today : 52.117
Change : -0.449 or -0.85%

Silver Gold Ratio Today : 0.01919
Change : 0.000164 or 0.86%

Platinum Price Close Today : 1581.80
Change : 8.60 or 0.55%

Palladium Price Close Today : 663.00
Change : 10.95 or 1.68%

S&P 500 : 1,390.78
Change : 21.21 or 1.55%

Dow In GOLD$ : $164.29
Change : $ 2.29 or 1.41%

Dow in GOLD oz : 7.947
Change : 0.111 or 1.41%

Dow in SILVER oz : 414.20
Change : 2.21 or 0.54%

Dow Industrial : 13,115.54
Change : 194.13 or 1.50%

US Dollar Index : 79.56
Change : 0.020 or 0.03%

Today the
GOLD PRICE made a new low for the move, $1,634.88. In overnight trading gold climbed to $1,556.40, then about 9:30 New York time somebody big tried to slap the fool out of gold. Drove it down to $1,634.88 by 10:00, but didn't reckon with gold's ability to snap back. As quickly as it had fallen or even more quickly, gold bounded back to the day's high, then settled down to scoot along $1,650 the rest of the day. Comex closed up $1.60 at $1,650.30, but that didn't tell much of a story. Aftermarket is holding on above $1,650.

Caption here is, "Out of weakness, strength." Unless the GOLD PRICE closes below today's low, it is out of danger.

SILVER PRICE also suffered an early morning attack, but its five day chart doesn't quite match gold's. Rather, silver made a low early Monday at 3116c, then climbed, and edged off the balance of the day. Started today around 3130c in Europe and reached 3180c before New York opened. Next the Attacker struck, driving silver down to 3133.2, and it recovered just as quickly as gold. Comex closed up 30.1c to 3166.5c. This leaves a distinctly bottomy look behind.

To maintain that bottom, SILVER needs to remain above 3130c tomorrow. Crucial mark to defend remains 3100c.

Nothing makes me as edgy as watching flat markets, knowing that pressure is building up somewhere that won't blow off until its ready. Some blew today, some stayed flat.

Stocks jumped straight up. Yesterday I said the Dow needed to pierce 13,000 or 'would crumple, and it must have heard me. Rose 194.13 (1.5%) to close at 13,115.54. S&P 500 kept pace today, rising 21.21 (1.55%) to 1,390.78.

Y'all will think this is merely my bias speaking, but regardless, look for a very short, sharp rise in stocks, maybe to the last high at 13,297, maybe over 1,400 for the S&P500. Following this speedy rise, stocks will step into a laundry chute that leads to Dow 12,500 or lower.

Flat currency markets bother me. NGM are up to something, maybe for the International Monetary Fund meeting this weekend. Scabby dollar went no place today, up 2 basis points to 79.563. Sorry euro closed $1.3129 versus yesterday's 1.3136. These are not differences big enough to see, much less change anything. Scruffy yen backed off 0.62% to 123.62c (Y80.89/US$1), but remains above its 50 day moving average, so momentum should carry it higher. However, that 124 level has very strong magnetism.

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.