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Thursday, October 04, 2012

The Gold Price Closed Up $16.80 at $1,794.10 Will it Break Out Upwards?

Gold Price Close Today : 1794.10
Change : 16.80 or 0.95%

Silver Price Close Today : 35.041
Change : 0.410 or 1.18%

Gold Silver Ratio Today : 51.200
Change : -0.121 or -0.24%

Silver Gold Ratio Today : 0.01953
Change : 0.000046 or 0.24%

Platinum Price Close Today : 1721.20
Change : 30.90 or 1.83%

Palladium Price Close Today : 673.10
Change : 16.85 or 2.57%

S&P 500 : 1,461.40
Change : 10.41 or 0.72%

Dow In GOLD$ : $156.42
Change : $ (0.52) or -0.33%

Dow in GOLD oz : 7.567
Change : -0.025 or -0.33%

Dow in SILVER oz : 387.41
Change : -2.25 or -0.58%

Dow Industrial : 13,575.36
Change : 80.75 or 0.60%

US Dollar Index : 79.34
Change : -0.567 or -0.71%

The GOLD PRICE made a slightly greater high for the move today at $1,794.90. It augmented $16.80 to close at $1,794.10. Low was a lofty $1,779.88.

Yes, yes, that bested the $1,790 line I drew in the sand yesterday, and maybe I am only fighting the tape, but why didn't it clear $1,800? Why can I see nothing but a broadening top since mid-September? And the same in silver? Yes, a consolidation can resemble a broadening top, until it breaks out upward, yes, I know that.

And the SILVER PRICE really puts the brakes on me. It gobbled up 41 cents today to close above 3500c at 3504.1. High was 3509, low 3465c.

But why in the aftermarket is silver trading at 3485.5c? And gold below $1,790 at $1,787.90.

Then the PLATINUM PRICE and PALLADIUM PRICE argue the other way. They were like two drunks with a charge card in a liquor store today. Platinum burst through $1,700 to $1,721.20, up $30.90. Palladium rose $16.85 to $673.10. That brings platinum plumb up to and barely past its last (September) high. But couldn't that be a double top? And it it spent nearly three weeks correcting, why is it so overbought again today? And palladium's close was $30 lower than its September high.

So the SILVER and GOLD PRICE along with platinum and palladium are tugging at the chain like they're dying to run off, and for some reason I can't identify I'm distrustful and doubting. Maybe I'm just out of synch with the market. Maybe I need to wind my watch. I reckon when you're nothing but a natural born fool from Tennessee it's bound to catch up with you sooner or later.

Well, when you set a target too close, you run the risk of whiplash. SO I was whiplashed in gold today, but I still don't believe it . . .yet.

The criminals at the European Central Bank left interest rates unchanged today at 0.75%. Bank of England miscreants did the same, but at 0.5%. And there's no Spanish bailout yet.

Dollar index closed below my 79.40 target, losing 56.7 basis points (0.73%) to 79.344. Are my eyes seeing something my brain's not aware of? That ought to take the dollar down, so why am I doubting? It's mighty perilous to fight the tape.

Maybe the reason is that the closes in the dollar and in silver and gold today are not unequivocal. The euro gained 0.88% to $1.3019 (€0.7681), on what news? On Super Mario Draghi's gas-filled boast that central bank actions have "alleviated tensions" in the euro zone. Gas, pure gas, but the currency markets bought it.

Euro popped its head above the downtrend line but stands a long way from the mid-September high at $1.3172. RSI and MACD both point to lower prices.

Yen just stayed in yesterday's range, waltzing with its 50 DMA (127.54c). Closed 127.45c (Y78.46), up 0.05%.

Stocks, like currencies, feed on bloviation. They're like air ferns, but they feed on gas. Dow rose 80.75 (0.8%) to 13,575.36. S&P500 gained 10.41 (0.72%) to 1,461.40. Stocks are wanting to rise, but are slow about it.

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.