Wednesday, August 15, 2012

The Gold Price Up $4.30 and will Likely Close Above $1,605 maybe $1,610 Tomorrow

Gold Price Close Today : 1603.70
Change : 4.30 or 0.27%

Silver Price Close Today : 27.805
Change : 0.049 or 0.18%

Gold Silver Ratio Today : 57.677
Change : 0.053 or 0.09%

Silver Gold Ratio Today : 0.01734
Change : -0.000016 or -0.09%

Platinum Price Close Today : 1397.60
Change : -2.70 or -0.19%

Palladium Price Close Today : 577.70
Change : -0.30 or -0.05%

S&P 500 : 1,405.53
Change : 1.60 or 0.11%

Dow In GOLD$ : $169.70
Change : $ (0.53) or -0.31%

Dow in GOLD oz : 8.209
Change : -0.026 or -0.31%

Dow in SILVER oz : 473.47
Change : -1.10 or -0.23%

Dow Industrial : 13,164.78
Change : -7.38 or -0.06%

US Dollar Index : 82.56
Change : -0.091 or -0.11%

When y'all saw the silver and GOLD PRICE slipping on Monday and Tuesday, y'all ought to have reckoned that it was a mere correction from the Friday high.

Sorry, friends, I sent y'all no commentary the last two days, but I had to make a trip and forgot to warn y'all on Friday.

The SILVER PRICE and GOLD PRICE haven't been anything to brag on the last two days, but pulled out of the slump today.

Last Friday GOLD was tapping away at $1,625, but yesterday dropped below $1,600 and today tested that $1,590 support with a $1,591.40 low. That didn't last long. Gold puts its toes down and bounced along that bottom from 4:00 a.m. to 8:00 a.m. When Comex opened the doors the crowd rushed in with money and a will, like women headed to an After-Christmas Sale. Whoops, gold ran out of gas at $1,609 resistance, and closed at $1,603.70, up $4.30.

Don't y'all whine and complain about that, because gold's chart looks a bit like a key reversal, or at least a double bottom the last two days. What has it achieved? It has now twice successfully defended this $1,590-ish support. It's uptrend remaineth intact. The MACD momentum indicator looks lazy, but remember this is August, and nothing much happens for metals in August. The GOLD PRICE will likely creep through $1,605 tomorrow, maybe close above $1,610.

The SILVER PRICE chart differeth from gold's only in the numbers on the index. Last three day's low struck today at 2748.8, but silver lingered not there. Ran straight for 28, but was driven back. Comex closed at 2780.5c, up 4.9 cents. Look for a couple of days sideway movement then a push through 2800c. Yet nothing significant will happen until silver breaks it's bounds at 2850c.

The Scrofulous US dollar (index) rose 14 basis points today to 82.663. This continues the silly sidewise move, saying nothing but that the Nice Government Men keeping it down to prevent panic from erupting in the euro.

Euro is green and sick as a ten-year old smoking cheap cigars. Spite of everything the central bank oxygen-wasters can do, euro keeps on nervously gapping down. They managed -- barely -- to close it above the 20 DMA ($1.2271) today at $1.2291, but still down 0.24%. 'Taint nothing going for the euro but wishful thinking. Oh, what pain will surge through the world if it breaks $1.1800!

Yen finally gapped down yesterday, away from that overhead resistance and nearly at the 50 DMA (126.53). Closed at 126.62 cents (Y78.98). Roll-over toward the earth's core is gaining speed.

Stocks spent another bewildered day, some indices rising, some falling, but no big moves in either direction. Dow looks like somebody's EKG, jerking up and down. Dow ended down 7.66 (0.06%) at 13,164.78 while the SYP500 gained 1.6 (0.11%) to 1,405.53.

Face it, stock fans: stocks have stalled. We may have seen the extent of this rally. All it's doing is building a rising wedge, which will most likely break out gravity-ward.

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.