Wednesday, February 13, 2013

The Gold Price Posted a Higher Low and a Slightly Higher High

Gold Price Close Today : 1644.20
Change : -4.50 or -0.27%

Silver Price Close Today : 30.854
Change : -0.002 or 0.00%

Gold Silver Ratio Today : 53.290
Change : -0.143 or -0.27%

Silver Gold Ratio Today : 0.01877
Change : 0.000050 or 0.27%

Platinum Price Close Today : 1728.60
Change : -12.50 or -0.72%

Palladium Price Close Today : 771.65
Change : 0.65 or 0.08%

S&P 500 : 1,520.33
Change : 0.90 or 0.06%

Dow In GOLD$ : $175.80
Change : $ 7.50 or 4.46%

Dow in GOLD oz : 8.504
Change : 0.363 or 4.46%

Dow in SILVER oz : 453.20
Change : -1.14 or -0.25%

Dow Industrial : 13,982.91
Change : -35.79 or -0.26%

US Dollar Index : 80.08
Change : 0.032 or 0.04%

The GOLD PRICE closed $4.50 lower today at $1,644.20 but posted a higher low. Highs were nearly identical, $1,651.91 today against $1,651.87 yesterday.

The SILVER PRICE traded to a higher high today at 3115c, and a higher low at 3071c, but closed down 15c at 3085.4c

Clearly buyers support gold around $1,640 and silver around 3050c - 3070c. If those don't hold, maximum downside risk for silver is 2990 - 2960c and for the GOLD PRICE $1,600. Up above, no confirmation of a rally arrives before they close above 3250c and $1,705.

We wait, stuck in the middle. Be patient, our time will come.

I reckon I'm so old that my reflexes are slowing down. This morning in the car National Proletarian Radio played a clip from a speech O'Bama was making in Asheville, and before I could change the channel, turn it off, or rip the radio out of the dash (I'm slowing down, I tell y'all) I heard him say that his plan to revive the economy was to raise the minimum wage from $7.25 to $9.25.

Let's see: how can we revive the economy and lower unemployment? I know! Let's RAISE wage costs for all employers, and price the lowest cost workers out of the market by raising the minimum wage! That way employers -- those our moronic policies haven't already driven out of business -- will have to buy machines to replace those low wage workers, and that will stimulate the economy! You can almost hear him and Ben guffawing over how smart they are.

It's time for me to move on to the next galaxy. There's no intelligent life left in this one.

Stock indices were confused today, some up, some down. Dow lost 35.79 (0.26%) and ended below the morale-busting or -boosting 14,000 at 13,982.91. I keep going back to the chart where I see what looks like one of those cartoons with the big fish gulping down a smaller fish who is gulping down a still smaller fish who is gulping down a minnow. It's Jaws of Death within Jaws of Death within Jaws of Death. Sooner or later, somebody's gonna get eaten.

S&P500 rose by a miniscule 0.9 (0.06%). Doesn’t really differ much from the Dow. In a month or so the weeping will begin.

Went back and looked again -- my daily exercise -- at the Dow in Gold and Dow in Silver. Figuring the Dow in Gold began its fall in July 2009 at 10.04 oz (G$207.54), and it bottomed at 5.82 in July 2011, then today it stands nearly at a 61.8% correction of that fall. About 9 oz (G$186.05) would make a 75% correction, which nests with the target of 9.12 I already had in mind. Dow in Silver weekly chart has not yet reached its 200 day moving average (465.83), a likely target for a turnaround and about on par with the 50% correction of the last fall (473.57).

Let us hear the end of the matter: both charts can rise more, but not much more. Maybe 5 or 6%.

Note carefully the sound of claxons in the US Treasury security market. The 10 year treasury note yield really has broken out to the upside. Now at 2.02%, if it rises above 2.4%, Ben the Business Slayer has lost the battle against reason and the interest rate. Just what a struggling economy and an inflating dollar need, higher interest rates.

US dollar rose an unimportant mite, 3.2 basis points to 80.083. While the dollar may have turned and has been generally rising since February began, it wilted yesterday when it struck the downtrend line from November's high. Bias is upward as it stands above its 50 and 20 DMAs.

Euro remains broken below its late $1.3711 high. Yet it might still climb higher unless it closes below $1.3150. Lost a measly 0.3% today to end at $1.3354.

Yen -- surprise, surprise -- did not sink again today to another new low. Rather, it rose 0.4% to 107.03c/Y100. No trend change yet.

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

- Franklin Sanders, The Moneychanger
10:00am-5:00pm CST, Monday-Friday

© 2013, 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.