Wednesday, June 13, 2012

The Gold Price Closed up at $1,618.10 Well Above it's 20 DMA

Gold Price Close Today : 1618.10
Change : 5.40 or 0.33%

Silver Price Close Today : 2893.5
Change : 8.0 or 0.03%

Gold Silver Ratio Today : 55.922
Change : 0.171 or 0.31%

Silver Gold Ratio Today : 0.01788
Change : -0.000055 or -0.31%

Platinum Price Close Today : 1465.30
Change : 12.40 or 0.85%

Palladium Price Close Today : 622.00
Change : -0.45 or -0.07%

S&P 500 : 1,314.88
Change : -9.30 or -0.70%

Dow In GOLD$ : $159.65
Change : $ (1.51) or -0.94%

Dow in GOLD oz : 7.723
Change : -0.073 or -0.94%

Dow in SILVER oz : 431.88
Change : -2.80 or -0.64%

Dow Industrial : 12,496.38
Change : -77.42 or -0.62%

US Dollar Index : 82.19
Change : -0.247 or -0.30%

GOLD PRICE rose $5.40 on Comex to close at $1,618.10. This is nice, this looks good on a résumé, but it doesn't get the job. The Job is to punch through $1,625 to $1,633 resistance and keep on climbing.

More encouragement comes from the 50 DMA ($1,615.74) which gold closed above today. The
GOLD PRICE remains well above its 20 DMA ($1,586.63).

SILVER PRICE keeps banging and banging on that 2900 cent ceiling, but without penetrating it yet. Pattern is tightening, like a coiling spring. Next move should be a jump up through that 2900 mark.

Comex silver today lost 8/10 of one cent to end at 2893.5c. Momentum is trying to rise: silver stands above its 20 dma (28.31).

The SILVER and GOLD RPICE are both clogged up here beneath resistance, but the resistance will give way. Can any real surprise or change come from the Greek elections this weekend? I doubt it.

Keep on buying silver and gold. In six months these prices will give you great bragging rights before your brother-in-law.

Right on cue today the Dow rose to 12,600 (actual high 12,598.25) to paint a top on that right shoulder, then sank like your watch in a churn to 12,450. Neckline of that head and shoulders top lies at 12,400, so if the Dow breaches that, better grab your parachute.

Dow today closed 12,496.38, down 77.42 (0.62%) in a ragged day that never managed to climb much above unchanged. S&P500 closed 1,314.88, down 9.3 or 0.7%).

WARNING: Stocks may be hazardous to your financial health. Sell stocks and put the proceeds into silver and gold.

US DOLLAR INDEX kept on sliding today, down 24.7 basis points (0.32%) to 82.187. However, the dollar is still blowing hot and cold out of both sides of its mouth. A closed below 81.70 would turn the dollar down, but it needs a close above 82.90 to turn up, really above 83.54. Today it pierced for the second day the 20 day moving average, now at 82.17. Pierced, but did not close beneath. This is like an alcoholic walking back and forth before a liquor store. Sooner or later, something will give.

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.