Tuesday, July 31, 2012

The Gold Price Lost $9.20 Today Closing at $1,610.50 Must Not Drop Below $1,600

Gold Price Close Today : 1610.50
Change : -9.20 or -0.57%

Silver Price Close Today : 2789.50
Change : -11.9 or -0.42%

Gold Silver Ratio Today : 57.734
Change : -0.083 or -0.14%

Silver Gold Ratio Today : 0.01732
Change : 0.000025 or 0.14%

Platinum Price Close Today : 1415.40
Change : 5.10 or 0.36%

Palladium Price Close Today : 589.75
Change : 2.20 or 0.37%

S&P 500 : 1,382.82
Change : -2.48 or -0.18%

Dow In GOLD$ : $167.48
Change : $ 0.65 or 0.39%

Dow in GOLD oz : 8.102
Change : 0.031 or 0.39%

Dow in SILVER oz : 467.76
Change : 1.10 or 0.24%

Dow Industrial : 13,048.11
Change : -24.90 or -0.19%

US Dollar Index : 82.62
Change : -0.169 or -0.20%

The GOLD PRICE mounted an attack on $1,625 resistance today, reached $1,627.70, then collapsed to close near the bottom of the range, down $9.20 at $1,610.50. Appears to me that the GOLD PRICE will stage another rise tomorrow, then fade to a low perhaps lower than today's. What's important? Must not drop below $1,600.

About noon today, just at $1,618, somebody smacked gold with selling, sending it down suddenly to $1,610. Program trading? NGM? Who knows.

The SILVER PRICE misplaced 11.9c today, closing at 2789.5c at the bottom of the range. Support from last Thursday is 2780c. Silver remains above its flat topped triangle boundary, in other words, it has still broken out to the upside and done nothing to contradict that or its rise above the 50 DMA (2777c). The SILVER PRICE usually has a slower time getting traction than gold when a rally is just beginning.

Markets are bating their breath, waiting on a policy announcement from the Federal Reserve Wednesday and from the ECB on Thursday. "Twill be more loud and showy explosions from the Blarney Cannons, but I am warning y'all, they're shooting blanks. Ain't got a single cannon ball between 'em.

Folks, look at the US dollar index chart, Notice that since last Thursday it has been basically flat, ranging 82.40 to 83.00. Today it skootched down 16.9 basis points (0.22%), ending at 82.621. On a longer term chart it punched through its 50 day moving average (82.57) Monday but didn't close there. Today it bounced off the 50 DMA and rose a little bit. In other words, since it hit the top trading channel boundary last week it has only corrected back to its 50 DMA, a common vanilla retracement. But expect no movement until the Fed and ECB touch off their Blarney Cannons. And remember that neither of them need or want a higher dollar, while both need and want a higher euro.

The Yen closed at 128.03c [Y78.11], floating just above the downtrend line but paralyzed. Can't imagine the Japanese Nice Government Men agreeing to a higher yen. Euro has bunched up around its 20 DMA (122.86). Closed today up 0.35% at $1.2305. Solid resistance is entrenched above at $1.2500. Any positive noise out of the ECB criminals on Thursday will goose it higher, but not for long.

Stocks were confused today, some indices rising, some falling, none very clear. Confusion and indecision abound. Dow shrank 24.9 points (0.19%) to 13,048.11. S&P500 did about the same, losing 2.48 (0.,18%) to 1,382.82.

S&P500 is hovering just beneath resistance from that neckline that broke down in May. A Fed announcement perceived as "positive" will give it an up-spurt, but ask yourself: is it a real market if it depends on central bank announcements to survive? Who's kidding whom?

As the European and US economies continue to unravel, do not expect any of the frauds in charge to appear on TV announcing they are rolling-back regulations, reducing taxes, eliminating the social burden on employers, or adopting a gold standard. Any of those would help, and fast, to restore economies, but all of them require government to give up fascist control over lives. That they will never do -- voluntarily.

These past few days I may have sounded rather harsh and unforgiving toward the criminals, parasites, and tyrants who stand in the way of our lives, freedom and prosperity. Most of the time I merely laugh at them because they are so ridiculous, posturing as Great Benefactors of Humanity and Wise Men when in fact they lack enough maturity to be admitted to an adult Sunday School class. But watching them is like watching a drug addict or alcoholic destroy his life. On the one hand a terrible sadness seizes you whenever someone destroys himself, but at the same time his self-destruction infuriates you so that you want to hit him upside the head with a tire iron and tell him to "Grow Up!"

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.