Thursday, August 09, 2012

The Gold Price Rose $4.20 Still Trying to Bust $1,625 but Closing $1,617.10 Higher Prices to Come

Gold Price Close Today : 1617.10
Change : 4.20 or 0.26%

Silver Price Close Today : 2809.70
Change : 2.0 or 0.07%

Gold Silver Ratio Today : 57.554
Change : 0.109 or 0.19%

Silver Gold Ratio Today : 0.01737
Change : -0.000033 or -0.19%

Platinum Price Close Today : 1411.30
Change : 2.00 or 0.14%

Palladium Price Close Today : 586.00
Change : 0.20 or 0.03%

S&P 500 : 1,402.80
Change : 0.58 or 0.04%

Dow In GOLD$ : $168.29
Change : $ (0.29) or -0.17%

Dow in GOLD oz : 8.141
Change : -0.014 or -0.17%

Dow in SILVER oz : 468.56
Change : 0.04 or 0.01%

Dow Industrial : 13,165.19
Change : 10.45 or 0.08%

US Dollar Index : 82.60
Change : 0.306 or 0.37%

The GOLD PRICE rose $4.20 to $1,617.10, but as nice as this is, it doesn't really prove anything. Just leaves GOLD trying to bust through $1,625 still. It's pushing, for sure, but must break through to change anything.

The SILVER PRICE rose -- get out your microscope -- two cents to 2809.7c. Chart resembles gold, but knocking at a ceiling of 2820c. 2860c is the next big barrier.

Yet this is progress. The SILVER and GOLD PRICE are holding on and slugging out gains cent by cent. Higher prices to come in the fall.

Today leaves me scratching my head. Course, that ain't no big trick, since I'm only a natural born fool.

Twist your brain around this. US Dollar index rose today, 30.6 basis points (0.39%) to 82.603, a right pert move. Makes you think demand for dollars rose, right? But the yield on 10 year treasuries gapped UP today, meaning the 10 year treasury price FELL. But what is a 10 year treasury made of save dollars? Nothing, not even any vanilla, so dollar demand fell?

Why mess with this? All that "flight into dollar" talk has some little credibility as long as that yield keeps falling and T-note rising, but the yield has now twice (2x) gapped up in the last three days. What I want to know is, what happens when the "flight OUT OF the dollar" starts? And it will look something like this, with yields rising fast. By the way, it appears that yield has bottomed and reversed.

The Draghi gas has been let out of the euro's bag. Euro dropped again today, down 0.46% to $1.2305. Tomorrow will probably drop below the 20 day moving average, which it touched today at $1.2264 Sorry, sorry.

Yen stumbled 0.17% to 127.27 cents (Y78.57). Rolling over earthward.

STOCKS were a mite bewildered today. Dow fell 10.45 to 13,165.19 while along with other indices the S&P 500 rose 0.58 to 1,402.80. Highest the S&P500 can reach is about 1,420, Dow about 13,300. Then the torture will begin.

I always thought there must be something in the world dumber than a US presidential race. I was wrong. The Republican, What's-His-Name, lambasts welfare cheats and accuses Obama and the Democrats of abetting them. Look at the numbers: this is an emotional red herring, as you can roll up all the welfare in a ball and throw in social security and it amounts to less than peanuts in the Federal Budget. Big money goes to war spending and medical care, and they won't touch war spending any closer than Superman will touch kryptonite.

I saw a Reuters report today that was got everything completely so wrong that it wasn't worth the trouble to unravel. It said we are getting close to game over for gold. What makes all these otherwise intelligent people such goofs when the topic turns to gold or silver? They have no clue what drives them. None. Not a bit, and even when they cite an excrescence of the driver -- in this case, the Fed's inflationary QE1 and QE2 -- they can't fit that into the bigger picture. Dopey as it sounds, they believe the Fed's propaganda that these inflationary waves help the economy or are limited to these two incidents. In other words, they don't grasp that the Fed's job is to INFLATE, and it can do no other, and that the entire jury-rigged financial and monetary and government spending system must inflate or die, and that inflation alone drives silver and gold.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2011, 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 in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't.

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 outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.