Wednesday, July 18, 2012

The Gold Price Has Drawn Support at $1,570 Be Patient and Buy the Dips

Gold Price Close Today : 1,570.40
Change : -18.70 or -1.18%

Silver Price Close Today : 2707.00
Change : -2.00 or -0.08%

Gold Silver Ratio Today : 58.010
Change : -0.645 or -1.10%

Silver Gold Ratio Today : 0.0172
Change : 0.0002 or 1.11%

Platinum Price Close Today : 1,401.80
Change : 3.50 or 0.25%

Palladium Price Close Today : 576.30
Change : 5.55 or 0.97%

S&P 500 : 1,372.78
Change : 9.11 or 0.67%

Dow In GOLD$ : $169.92
Change : $ 3.36 or 2.02%

Dow in GOLD oz : 8.22
Change : 0.16 or 2.02%

Dow in SILVER oz : 469.20
Change : 2.96 or 0.63%

Dow Industrial : 12,908.70
Change : 103.10 or 0.81%

US Dollar Index : 82.97
Change : -0.00 or -0.00%

The GOLD PRICE lost $18.70 (1.18%) today, closing Comex at $1,570.40. Silver lost less, 22.1 cents (0.8%), to end at 2707.1 cents.

GOLD & SILVER are just in the middle of things. Middle of the trading range defined by Bollinger bands, middle of the Relative Strength Indicator (RSI) and in the middle of the Williams % R. Just middlin', that's all.

The SILVER PRICE over the past 3 days has formed a sort of diamond formation that could break further or could merely found a continuation. Gold's chart isn't nearly so clean, but has drawn a support line at $1,570 with last Friday's low. I know to remain alert always, but can't see anything in all this other than the indecisive back & forth trading in a triangle. It will resolve. Be patient, & buy the dips.

I hate to waste y'all's time with meaningless stuff -- and everything that happens in Washington is meaningless -- but this was too ridiculous to pass up, because it is simply a hilarious, gargantuan, bald- faced lie, colossal even by Washington standards.

Federal Reserve chairman & noted criminal Ben "the Bloviator" Bernanke spoke to the US House of Representatives Financial Services Committee. Somebody brought up Ron Paul's bill to audit the Fed and allow congress to review the Fed's monetary policy decisions. The very thought of that sent Bernanke's Lying Gland squirting into overdrive. The result is so hilarious I have to share it with y'all, from the Reuters report:

"Bernanke said it would be a 'nightmare scenario' if politicians decided to second-guess monetary policy. [Nightmare? Nightmare? Worse than what we suffer now? -- FS]

"That is very concerning [this is barely recognizable as English -- FS] because there's a lot of evidence that an independent [Yuck! Yuck! Yuck!] central bank that makes decisions based strictly on economic considerations [Yuck! Yuck!] and not based on political pressure [Yuck, yuck even more!] will deliver lower inflation & better economic results in the longer term."

To maintain the Fed does not base its actions on political pressure is, well, simply hilarious. And to claim that with or without political pressure it can deliver "lower inflation & better economic results in the longer term" flies in the face of all known history since the Fed's founding in 1913.

Maybe he's not just a criminal. Maybe he's a sociopath, too. Or maybe he's practicing to be a stand up comedian!

So, all joking aside -- and them central bankers are notoryus jokers, all funny bone -- what happened to markets today?

Dollar took a tee-tiny hit from the Bernancubus' comments, stocks read in them the soon-coming Jubilee, & silver & gold tucked tail and ran.

The US dollar index right now is trading down 4/10 of a basis point, but below the 83 psychological barrier at 82.972. For three days now the buck has knocked on 89.92, increasing the odds that next time it knocks, the trap door will open.

Euro lost 0.7% today, basically flat at $1.2284. Yen added 0.34% to 126.91c (78.80), but is just vibrating around its 200 day moving average 126.71), unable to make up its mind and still trapped in a downtrend.

Stocks drank a bunch of that Bernanke Booze & ran hog wild. Dow rallied 103.16 (0.81%) to 12,908.70. S&P500 gained 0.7% (9.11) to 1,372.78.

Tame your jubilation, stock investors. This merely brings both indices closer to the neckline of the head & shoulders top they already smashed in May. More, they have scratched out Rising Wedges, which generally fail & crash.

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.