Tuesday, June 12, 2012

The Gold Price Rose $17.20 to Close Comex $1,612.70 Expect Gold to Continue Upward

Gold Price Close Today : 1612.70
Change : 17.20 or 1.08%

Silver Price Close Today : 2894.30
Change : 33.70 or 1.18%

Gold Silver Ratio Today : 55.720
Change : -0.055 or -0.10%

Silver Gold Ratio Today : 0.01795
Change : 0.000018 or 0.10%

Platinum Price Close Today : 1452.90
Change : 5.10 or 0.35%

Palladium Price Close Today : 622.45
Change : -1.35 or -0.22%

S&P 500 : 1,324.18
Change : 15.25 or 1.17%

Dow In GOLD$ : $161.17
Change : $ 0.39 or 0.24%

Dow in GOLD oz : 7.797
Change : 0.019 or 0.24%

Dow in SILVER oz : 434.43
Change : 0.57 or 0.13%

Dow Industrial : 12,573.80
Change : 162.57 or 1.31%

US Dollar Index : 82.42
Change : 0.176 or 0.21%

GOLD PRICE made good my suspicions that it was headed higher by crossing the psychological $1,600 barrier today, along with the $1,600 - $1,608 technical barrier. It rose $17.20 to shutter Comex at $1,612.70. Next barrier is $1,630. Expect the GOLD PRICE to continue its upward march.

The SILVER PRICE still failed to pierce that 2900 cent barrier, although it did touch 2904c. Not it becomes crucial for silver to step across that 2900c line and take gold's hand in agreement and rise to the occasion. Expect that tomorrow.

I always love for people to send me opinions opposite to mine because it forces me to check my own conclusions (well, unless it's from some Wall Street do-do who doesn't' know "sic 'em" from "come here" to begin with.) Anyhow, I saw one the other day that was right well reasoned, claiming that Gold could drop yet again to $1,435. Good technical observations, but with a wrong conclusion, I humbly demur. Reason is that silver is now into its 13th month of correction and gold into its 9th month, and that ought to suffice to have reached a bottom and begin slowly to turn up. Humility and long experience with chastening makes me add, "But I could be wrong."

Mercy, here's something that'll surprise y'all, a headline from the New York Times (motto: "All the news that fits"): "Bailout in Spain Leaves Taxpayers Holding the Bag." Now THERE'S a surprise, a bank bailout that leaves taxpayers with the tab. They get the profits, we get the shaft. Dog bites man, bankers bite taxpayers.

Of the two possible outcomes I laid out for stocks yesterday, it appears, since stocks rose today instead of crashing through that 12,400 neckline, that they will form the right shoulder of a head and shoulders top before they plunge further. This will paint out a rise to 12,600 or so over a day (maybe two), then drop toward that neckline. A close above Dow 12,650 would gainsay that outlook and point stocks higher.

Today the Dow rose 162.57 points (1.31%) to end at 12,573.80. S&P500 rose 15.25 (1.17%) to 1,324.18. Dow dropped 143 yesterday rose 163 today. This is wheel-spinning, burning up buying fuel and friends alike.

Euro rose a little today, up 0.25% to $1.2506. Remains below it's 20 DMA at 125.65. Peeteeful.

Yen went sideways but looks weaker and weaker lost 0.09% to 125.84 cents/Y100 (Y79.47/US$1).

US dollar index lost 17.6 basis points (0.23%) to end at 82.419. Five day chart is whispering and hinting that the dollar has turned, but must clear 82.85 to confirm that.

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.