Gold Price Close Today : 1639.90
Change : 19.80 or 1.22%
Silver Price Close Today : 29.421
Change : 0.832 or 2.91%
Gold Silver Ratio Today : 55.739
Change : -0.930 or -1.64%
Silver Gold Ratio Today : 0.01794
Change : 0.000294 or 1.67%
Platinum Price Close Today : 1506.50
Change : 9.60 or 0.64%
Palladium Price Close Today : 623.60
Change : 16.50 or 2.72%
S&P 500 : 1,413.17
Change : -4.96 or -0.35%
Dow In GOLD$ : $166.44
Change : $ (2.89) or -1.70%
Dow in GOLD oz : 8.051
Change : -0.140 or -1.70%
Dow in SILVER oz : 448.78
Change : -15.44 or -3.33%
Dow Industrial : 13,203.58
Change : -68.06 or -0.51%
US Dollar Index : 81.89
Change : -0.570 or -0.69%
Breakout confirmations came sharp and fast for the silver and GOLD PRICE today, but the day didn't treat stocks or the US dollar index quite so kindly.
Overnight the GOLD PRICE knocked and knocked on $1,622, then at the New York Open gapped up, jumping clean from 1628 to $1,635, then hitting $1,641. Close found it up $19.80 at $1,639.90. Thus gold today loudly broke out, and confirmed silver's breakout yesterday.
It doesn't stop there. Generally gaps come in pairs, the first a "breakaway" gap, then a little sideways trading, then another gap near the move's top, the "exhaustion" gap. This move probably has another $15 in it before it slows down. Gold is set up now for a rush to $1,680 - $1,725.
The SILVER PRICE broke through 2900 cents on its New York open, then climbed like a young Sherpa all day. After a 2949c high, it ended 83.5 cents more expensive at 2942.1c. I can't stand it when people say "I told you so," but do I remember somebody saying if silver got through 2860c it would run? Did I imagine that?
The SILVER PRICE rose 2.9% today, the GOLD PRICE 1.2%. Add to that mix: yesterday the GOLD/SILVER RATIO fell 1.06%, today another 1.6% to 55.739:1. All this is moving in the right direction for much higher silver and gold prices. Silver ought to reach its 200 DMA (30.56) on this move. Owch! I nearly forgot. Gold finished the day just above its crucial 150 DMA ($1,624.09). Today the GOLD PRICE also smashed its way out of that even-sided triangle that has contained it all month long.
Buy the breakouts! Buy the breakouts!
Here is one of those silly anomalies that allow our Rulers to herd us like sheep: talking obviates acting for central banks. Back in July the gassy head of the European Central Bank, Super-Mario Draghi, boasted that he would do anything necessary to keep the euro together. Gas, all gas -- he did nothing, but in the world of pure illusion we live in, where even most of the people are wet cardboard, that's enough to boost markets. Euro rose to a 7-week high against the US dollar today, but on news of -- what? Nothing. Speculation, gas, that the ECB may act soon to do something about Italy and Spain's ballooning borrwwoing costs.
Take this to the next level of ludicrousness: there's nothing Draghi can do. Nothing. He can't buy the bonds, he can't bail out Italy and Spain, he has no bucket big enoguh to hold all the garbage. Yet he spoke, and therefore need not act.
More likely than the talk is a behind the door intervention by the Nice Government Men, since the dollar tumbled through 82 resistance today and skidded to a stop at 81.885, down 57 basis points or 0.73%, a meaty move that technically breaks the last low and threatens to drag the dollar lower (as if something that low could be dragged lower!).
More to the technical point, the euro today did gap up, above the crucial 62 day moving average (123.98) AND piercing the reigning downtrend line. This doesn't put the scabby euro in any great position, since the downtrend line higher, around 127.70 today, promises to stop it as well. Euro closed at $1.2472, up 1.01%.
Trying to be objective as I deal with such a hateful topic, is like trying to write compliments about the slugs eating your tomato plants. I confess the euro has built a uptrend from its July 120.42 low and today broke out upwards from an even-sided triangle. Higher prices are in its future, insofar as one can make a rational and logical inference about an irrational and illogical government-manipulated market.
Japanese yen rose 0.17% to 126.16 cents (Y79.26). Remains beneath 200 and 50 DMAs, headed lower.
STOCKS fell across the board today. Tried to climb the mountain early, but about 10:45 tripped, stumbled all the way down the mountainside, then over the edge into the gully at the mountain's foot. Owch.
Dow slipped 68.06 or 0.51% to 13,203.58. S&P500 dwindled 4.96 (0.35%) to perch at 1,413.17.
Looking at the Dow, it reached its rising wedge's top boundary today and fell back like the Wicked Witch of the East facing Dorothy with a bucket of water. S&P500 looks the same. Both are struggling against this year's highs. If they can beat that mark, they will benefit from a wave of enthusiasm that will blow out like a bad tire on hot concrete, but it will carry them slightly higher.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
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© 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.
