Tuesday, August 28, 2012

The Gold Price Came back Strongly after Falling Last Night to Close at $1,666.50

Gold Price Close Today : 1666.50
Change : -5.90 or -0.35%

Silver Price Close Today : 30.875
Change : -0.173 or -0.56%

Gold Silver Ratio Today : 53.976
Change : 0.111 or 0.21%

Silver Gold Ratio Today : 0.01853
Change : -0.000038 or -0.21%

Platinum Price Close Today : 1519.10
Change : -32.80 or -2.11%

Palladium Price Close Today : 539.70
Change : -15.05 or -2.71%

S&P 500 : 1,410.82
Change : 0.38 or 0.03%

Dow In GOLD$ : $162.73
Change : $ 0.52 or 0.32%

Dow in GOLD oz : 7.872
Change : 0.025 or 0.32%

Dow in SILVER oz : 424.90
Change : 2.18 or 0.51%

Dow Industrial : 13,118.74
Change : -5.93 or -0.05%

US Dollar Index : 81.35
Change : -0.298 or -0.36%

The GOLD PRICE pocket was picked for $5.90 today. Closed Comex at $1,666.50. Silver lost 17.3 cents to close 3087.5c.

Five day gold chart shows a correcrtion. Overnight gold fell to $1,658.70, but came back strongly today with another rush at $1,672. Didn't work.

The GOLD PRICE is blowing hot and cold out of both sides of its mouth. It is running at $1,675 as if it wanted to break down that door, but can't make it. On the other hand, should it fall below $1,645, it could revisit $1,600: tug of war, and I don't know who is stronger.

The SILVER PRICE at 3098c made a slightly lower high than yesterday's, but at 3058c a low only a penny lower. Silver's upper boundary is 3124, lower is 3045c. A break through either one takes it a long way in the same direction.

What does it say to y'all that after comments from a German former ECB official and a Bavarian politician recommending that Greece leave the EU, the German Chancellor Angela Merkel pleads in public for everyone to "weigh their words carefully"? Does that sound like someone who has a solution, or someone who sees the wheels falling off and wants everybody to keep his mouth shut?

What is proposed for the ECB is to buy the debt of Spain, Italy, Greece, etc., effectively monetizing that debt. Since Germany in the Weimar inflation (1920 - 1923) saw the Reichsmark fall from 4.23 gold marks to the dollar to 4.23 Trillion marks to the dollar by precisely this process, the central bank buying up govenrment debt. In the process German society was undermined, the middle class impoverished, and the way paved for Adolf Hitler.

By the way, when Ben the Bandit and his Friendly Feds buy all the leftovers at US Treasury debt auctions, they are following exactly the same process.

Markets are moving little, anticipating Ben's Bloviations at the Jackson Hole Meeting of the Mighty on Friday. Super-Mario Draghi was supposed to speak, but he begged off. Seems he had to cancel because he needed to straighten his sock drawer. Yeah, sure, he has a plan to save the Euro, he's just too busy to talk about it.

US dollar dropped 29.8 basis points today (0.38%). It's plunge has traversed more than half the width of its main trading channel, and draweth nigh the last important low, 81.16, and the 200 day moving average (80.53). RSand and MACD offer no hope for reliev. Time to start wondering whether the dollar will recover from this or not.

Five day chart shows a corrective rise, with a high yesterday about 8185, and an impulsive fall off the cliff today. Any break of 81.25 will send the dollar to that 200 DMA quicker than a cat can steal your hot dog right out of the bun.

The scabby euro pulled its rags about it's ears, turned up its nose, and rose 0.54% to $1.2565, like a wino waking up in the gutter and scrabbling to regain his dignity. 'Taint nothin' happening till the Euro busts that $1.2600 resistance.

It the global fiat currency race to the bottom, the smart money is riding on the yen, most overindebted government and eocnomy. Yet defying economics, logic, and gravity the yen rose today 0.31% to 127.38c (Y78.51). Remains below the descending treneline. Needs to clsoe above 128 to turn positive.

Stocks really looked ratty today. Nasdaq (pronounced NAS-DA-KWUH) rose, along with the Nasdqaq 100, but other indices fell. Dow misplaced 5.93 (0.05%) and finished at 13,118.74. S&P gained a microscopic 0.38 (0.03%) to 1,410.82. Stocks are stalled, wanting to fall but kept afloat by hopes that Bandit Ben will bloviate them skyward.

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.