Thursday, June 14, 2012

The Gold Price is Battering the $1,625 Resistance May Pierce that Tomorrow

Gold Price Close Today : 1618.40
Change : 0.30 or 0.02%

Silver Price Close Today : 2840.1
Change : -53.4 or -1.85%

Gold Silver Ratio Today : 56.984
Change : 1.062 or 1.90%

Silver Gold Ratio Today : 0.01755
Change : -0.000333 or -1.86%

Platinum Price Close Today : 1486.10
Change : 20.80 or 1.42%

Palladium Price Close Today : 633.60
Change : 11.60 or 1.86%

S&P 500 : 1,329.10
Change : 14.22 or 1.08%

Dow In GOLD$ : $161.60
Change : $ 1.97 or 1.24%

Dow in GOLD oz : 7.818
Change : 0.095 or 1.24%

Dow in SILVER oz : 445.47
Change : 13.60 or 3.15%

Dow Industrial : 12,651.91
Change : 155.53 or 1.24%

US Dollar Index : 81.88
Change : 0.256 or 0.31%

GOLD PRICE rose a mighty 30 cents today to close Comex at $1,618.40. Sounds trifling until you look closer.

First, the GOLD PRICE remains handily within its uptrend since the Monday low. More, About the time the New York market opened, gold has already pushed through $1,625 resistance to reach $,627.50 and bid fair to run off. About 9:30 SOMEbody showed up selling lots of gold and drove the price down to $1,610.30 in minutes. Good try, NGM, but it didn't stick. The GOLD PRICE bounced right back and by 11:30 had gapped and risen above $1,624. After the $1,618.40 Comex close gold bounced back to $1,622+, where it remaineth.

Plainly, the GOLD PRICE is battering at that $1,625 resistance. Barring more mysterious selling -- a lot more -- it could pierce that ceiling tomorrow. In any event I don't expect it will fall back. Surprises can always happen, but I reckon you'll never see gold below $1,590 again.

SOMEbody hit the SILVER PRICE worse than gold today. About the same time somebody took a notion to hit gold SOMEbody smote silver, driving it from 2900 cents to 2820c. No worry, silver re-bounded, but ended the day 53.4 cents lower at 2840.1. GOLD/SILVER RATIO rose to 56.98.

The SILVER PRICE chart doesn't look as garlicky-strong as gold's, but it remains above its 20 DMA so momentum points up. 'Twould comfort me silver rise above its 50 DMA (2971c) tomorrow, or Monday.

From within themselves, silver and gold are ready to move higher. NGM may cast a few more stumbling blocks into their path, but though they fall, they will rise. Count on it.

Rather than hide my suspicions and biases, I'll just parade them right out here in front of you, especially today, when they are being stimulated so electrically.

Now think. As a matter of official and statutory if secretive policy the US government and Federal Reserve in concert with other central banks actively manipulate currency and silver and gold markets. This weekend the Greeks hold an election that may signal their departure from the euro and disrupt the whole fascist banking cart in Europe. If you were a central banker, would you reach into markets proactively and manipulate them to keep them calm before that election?

Does a duck eat bugs?

Hence no one should be surprised that the euro rose today, the dollar fell stoutly (0.33%), and "Somebody" sneaked into the silver market and slapped it from a threatening-to-break--the-leash 2910 to 2820 cents in a few minutes. If you were the Nice Government Men tasked (as they like to intone) with keeping gold down, wouldn't you prefer to hit the much smaller silver market first so your gold market trickery would work more strongly?

Does a rat eat garbage?

Dow Jones industrials probably gainsaid that head and shoulders formation by closing above 12,650 (peak of the head) today, but maybe not. (Remember that the top of the right shoulder in May reached barely higher than the head). In any event most of the buying came from SOMEbody active after 3:30, i.e., 30 minutes before the close. Dow managed a stout gain of 155.53 (+1.24%) to 12,651.91 while the S&P500 almost kept up at 1,329.10, up 14.22 or 1.08%.

None of this even marginally interests me in stocks. Their fate is sealed. Dow today bumped up from beneath into the neckline of the LARGER head and shoulders that it broke down from at May's close. Folks, I know I'm no more than a ridge-runner from Tennessee, but I'm warning y'all that there's no future in this stock market, other than the easy descent into Avernus.

Currencies were as entertaining today as Catherine the Great's Potemkin-sponsored ride through Russia, and about as genuine. US dollar index axed its way through the 20 day moving average (82.24) to drop 25.6 basis points (0.33%) to 81.876. Sure, sure, right before that Greek election everybody's dumping dollars. Right.

The euro rose to $1.2632, up 0.6%. Here there is a gigantic short position, so one could also chalk that rise up to wary shorts closing out their positions before that election, just in case it goes well for the euro.

The yen remained quiet, practically flat at 126c/Y100 (Y79.37/US$1). Yen if floating along underneath its 20 DMA without enough moxie to rise through it.

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.