Tuesday, June 26, 2012

The Gold Price Still Must Hold $1,558 and Silver 2641c

Gold Price Close Today : 1574.00
Change : -13.50 or -0.85%

Silver Price Close Today : 2703
Change : -48.2 or -1.75%

Gold Silver Ratio Today : 58.214
Change : 0.529 or 0.92%

Silver Gold Ratio Today : 0.01718
Change : -0.000158 or -0.91%

Platinum Price Close Today : 1426.80
Change : -12.60 or -0.88%

Palladium Price Close Today : 592.65
Change : -13.55 or -2.24%

S&P 500 : 1,320.10
Change : 6.29 or 0.48%

Dow In GOLD$ : $164.62
Change : $ 1.84 or 1.13%

Dow in GOLD oz : 7.964
Change : 0.089 or 1.13%

Dow in SILVER oz : 463.60
Change : 9.29 or 2.05%

Dow Industrial : 12,534.90
Change : 32.24 or 0.26%

US Dollar Index : 82.36
Change : -0.089 or -0.11%

'Twas a near thing for the silver and
GOLD PRICE today, but it pulled out. I said yesterday gold must not close below $1,558 nor silver below 2641 cents. Lo, I watched as gold worked its way from a $1,583.55 open down to $1,667.60 just before 11:00 a.m. Gold clambered up out of that hole, and didn't sink below $1,570 again. For about 15 minutes there I couldn't keep my eyes off the screen. On Comex gold lost 13.50 and closed $1,574. This works. Day after a strong advance (+21.50 yesterday) a market often gives back quite a bit. But I am still watching that $1,558.

The SILVER PRICE chart mimicked gold's, falling from the open to a 2679.8 low just after 11:00 a.m. Never dipped below 2700c after that, and closed Comex 48.2c lower at 2703.8c.

Line in the sand left on today's chart -- and where the fight will take place tomorrow -- is 2720c. After that silver needs to better yesterday's close and punch through 2750c.

We are now in the middle of silver and gold's seasonal low window, which can fall from mid-June to mid-August, but more narrowly in June or July. The GOLD PRICE still must hold $1,558 and the SILVER PRICE 2641. Watch 'em.

Longer I hang round, the nuttier things get. Today Cyprus (a tee-tiny EU member, pop. 801,851, smaller than metro Memphis) told the EU they, too, need a bailout, and it may equal $12.5 billion, half the size of their economy. (I'm thinking about telling the EU that I need a bailout. I want $12 million, but I'll settle for $8 million. Okay, $6 in a pinch.)

More than that, the EU ministers are meeting in their 19th summit in the last couple of years. I told y'all this move was coming: more centralization. This new grand plan proposes the eurozone have its own finance minister, and that the member states give control over their budgets to some central authority and share responsibility for their debt.

WHOA! This is like you buying a $60 bottle of single malt Scotch, which you eke out to yourself a spoonful a week, and being ordered to share it with your brother-in-law, who drinks a quart of vodka every morning. Somebody's gonna get cheated in this deal.

Mercy! Y'all think I make this stuff up, don't you? I've been telling y'all for a long time that there are no adults in the building. Been gone for years.

US dollar index gave back a little today, losing 8.9 basis points (0.11%) to 82.361. It's okay, it cleared its 20 day moving average (DMA, now 82.31) yesterday, and floated above it today. Headed higher unless Big Ben the Criminal gets scared or needs to do his euro buddies a favor.

Yen surprised me today by advancing a teench (0.24%) to 125.83c/Y100 (Y79.47/US$1) and the 50 DMA (125.32). Remains in a downtrend with lower highs and lower lows, so needs to close above 128.77c to reverse the downtrend. When pigs fly.

Wow, here's some news: euro fell again today. Well, at least it was only 0.4% to $1.2495, but it stands below all its moving averages, RSI is headed down, MACD looks to be rolling over earthward. $1.2000, here we come!

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.