Wednesday, August 01, 2012

The Gold Price Remains Safely Above it's 20 and 50 Day Moving Average

Gold Price Close Today : 1603.70
Change : -6.80 or -0.42%

Silver Price Close Today : 2751.70
Change : -37.8 or -1.36%

Gold Silver Ratio Today : 58.280
Change : 0.546 or 0.95%

Silver Gold Ratio Today : 0.01716
Change : -0.000162 or -0.94%

Platinum Price Close Today : 1399.80
Change : -15.60 or -1.10%

Palladium Price Close Today : 581.80
Change : -7.95 or -1.35%

S&P 500 : 1,375.34
Change : -3.98 or -0.29%

Dow In GOLD$ : $167.26
Change : $ 0.31 or 0.18%

Dow in GOLD oz : 8.091
Change : 0.015 or 0.18%

Dow in SILVER oz : 471.57
Change : 5.23 or 1.12%

Dow Industrial : 12,976.21
Change : -32.47 or -0.25%

US Dollar Index : 83.13
Change : 42.600 or 105.10%

Once the GOLD PRICE broke that $1,610 level it must inevitably re-visit $1,600. It did, even dropping today as low as $1,592.70. None of this is fatal, since gold shook off its torpor and closed down only $6.80 at $1,603.70.

On the longer chart, gold closed today barely above the even-sided triangle's top boundary, the one it spent 3 months sketching out and broke out of 6 days ago.

The GOLD PRICE remains safely above its 20 day moving average ($1,591.71) and 50 DMA (1,592.33), and so far today's more looks like no more than a return to breakout for a kiss good-bye.

Left to itself, gold is trying to climb. However, tomorrow the European Central Bank will load up its Blarney Cannon for another salvo. That might blacken gold's face for a day or two, but I think the Fed has already done as much damage to gold as central banks can right now.

As my friend Sut would say, "You could put a central banker's soul into a turnipseed and it would have as much room to fly around as a leatherwing bat in a meeting house."

Markets taxed the SILVER PRICE 37.8 cents today for a close at 2751.7c. Low came at 2716.5c, but point is that silver couldn't hold on above 2800c.

Bull markets climb a wall of worry, especially bull market rallies. SILVER is always the more troublous metal as rallies begin, slower to start, jumpier. Unless tomorrow brings much weaker closes, gold below $1,580 and silver below 2680c, y'all will see higher prices next.

By the way, silver closed right on the upper boundary of that flat-topped triangle.

The world awaited the Mighty Shot from the Ben's Blarney Cannon, but 'twas not the shot heard round the world but the shot barely heard across the street. No bigger than a mouse burp. Peetiful.

Constrained by a presidential election year and heavy political criticism, the Fed chose not to do anything more than bloviate and bluster. Stock and euro buyers weren't happy to hear that, and showed their displeasure by backing off.

Yes, I know that measles, too, is despicable, just like the Fed, but can still kill you. And the Fed can still cause monstrous spasms of pain and poverty, yet once again we see how despicable and powerless they really are. They're not running the economy, they're riding a tiger, praying like crazy they can hold on without getting mauled. The adults are all gone.

Stocks were slammed today from all sides. An electronic glitch stopped trading for a while, stock announcements were mixed, and the Fed refused to mount the white horse and ride to the rescue.

Dow yielded up 32.47 (0.25%) to close 12,976.21. S&P500 matched that with a 3.98 point (0.29%) fall to 1,375.34.

My, my, how a few days' passage has exposed Mario Draghi's boast he would do anything to save the euro, a boast empty as the Grand Canyon. Stocks were ecstatic Friday, and today are depressed. See how wonderfully well central bank manipulation works for markets?

Dow had appeared to have broken out to the upside of a rising wedge, which normally breaks out downside. Now it has traded back down into the wedge, begging one to conclude that it was a false breakout, and the market's true direction is toward the earth's core. A single 200 point bad day will take stocks out the bottom side of that wedge, and that won't encourage buyers any more than Mario Draghi's hogwash.

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.