Thursday, March 28, 2013

The Gold Price Lost $11.40 for the Week Closing Today at $1,594.80

Gold Price Close Today : 1,594.80
Gold Price Close 22-Mar-13 : 1,606.20
Change : -11.40 or -0.7%

Silver Price Close Today : 28.29
Silver Price Close 22-Mar-13 : 28.67
Change : -0.37 or -1.3%

Gold Silver Ratio Today : 56.369
Gold Silver Ratio 22-Mar-13 : 56.032
Change : 0.34 or 0.6%

Silver Gold Ratio : 0.01774
Silver Gold Ratio 22-Mar-13 : 0.01785
Change : -0.00011 or -0.6%

Dow in Gold Dollars : $ 188.97
Dow in Gold Dollars 22-Mar-13 : $ 186.77
Change : $2.20 or 1.2%

Dow in Gold Ounces : 9.141
Dow in Gold Ounces 22-Mar-13 : 9.035
Change : 0.11 or 1.2%

Dow in Silver Ounces : 515.29
Dow in Silver Ounces 22-Mar-13 : 506.25
Change : 9.04 or 1.8%

Dow Industrial : 14,578.54
Dow Industrial 22-Mar-13 : 14,512.03
Change : 66.51 or 0.5%

S&P 500 : 1,569.19
S&P 500 22-Mar-13 : 1,556.89
Change : 12.30 or 0.8%

US Dollar Index : 82.980
US Dollar Index 22-Mar-13 : 82.368
Change : 0.612 or 0.7%

Platinum Price Close Today : 1,571.20
Platinum Price Close 22-Mar-13 : 1,580.70
Change : -9.50 or -0.6%

Palladium Price Close Today : 767.10
Palladium Price Close 22-Mar-13 : 759.75
Change : 7.35 or 1.0%

The GOLD PRICE lost $11.40 to close Comex at $1,594.80. the 1,593.90 low came a bit higher than yesterday's $1,591.45. Those buyers at that low level just won't go away. The GOLD PRICE now has touched the same $1,591 low, and it's beginning to look like an impermeable bottom -- unless it proves not to be.

The SILVER PRICE lost 38.5 cents to 2829.2c. Today's 2820c low makes a double bottom with yesterday's 2813.9c. Today silver did not rise strongly off its low as it did yesterday.

Silver vexed every optimist by falling this week below the 2840c bottom boundary of its 26 trading day range. That's not all bad, since it might mark the end of the correction and preparation for turning up into a rally. That, however, is only my anticipating. Gold broke out of a pennant, rose weakly, and now has rolled over, BUT refuses to close below its 20 DMA ($1,592.39).

For the nonce, central bankers sit in the catbird seat, but their time is short. Unless cause and effect have ceased in this world, the Federal Reserve (which is not "federal" and hath no "reserve" at all) cannot print $85 billion month in and month out without the inflation at some point ballooning prices. More, the entire world monetary system has inflation poisoning bulging out everywhere. And inflation, of course, is what drives the silver and gold markets.

Y'all just be patient. If silver drops below 2800 cents, wait a day and buy some. Ditto for gold below $1,570. Up above, if gold closes through $1,625 and silver through 2950c, buy some.

Parsing this market is almost as easy as milking a ticklish cat. Nothing works exactly as it ought to work, and hints, whispers, and innuendos on the chart keep coming to nothing, or continue senselessly like MacBeth's description of life.

This week silver fell a little, whether for good or ill remains to be revealed. Gold fell too, and is in the same case. Stocks rose modestly, and today the S&P500 finally bested its 1,565.15 high. And proving who is telling the tale, palladium rose this week.

Mayhap I am deceived, but right now I perceive events as a storm circling around the bank bailout/depositor-backstabbing in Cyprus. Whirling around in this storm are exchange rates which the Nice Government Men are at their wits' end, frantically trying to keep the euro from tanking and the US dollar from soaring. Flying by go US bond yields, then stock indices which must not show signs of fear as they fly high. Silver and gold must be pressed down further, bank runs quelled, and meanwhile all the news must be carefully managed to make it appear, "The lark's on the wing/ the snail's on the thorn/Central bankers are in heaven/All's right with the world."

To the point. The US dollar closed today 24.1 basis points higher than this time yesterday, up 0.29% at 82.98. True, it backed away from its over-83 stance, but now appears headed higher anyway as long as it remains above 82.7.

In this Best of All Possible Financial Worlds, the euro sneaked above $1.2818 today, rising 0.30% and -- somebody hopes -- restored hopes murdered by yesterday's plunge through $1.2800. Oh, how suspicious I am, and thus expect to see a lower euro come Easter Monday.

The Yen gained 0.33% to 106.22 cents/Y100. Inscrutable and untouchable, far's I'm concerned.

STOCKS encouraged their cheerleaders today with new highs in the Dow ($14,585.10) and, finally, the S&P500 (1,570.28). It don't get no better than this. Wait? What did I just say? Maybe it doesn't.

Dow gained 52.38 (0.36%) to 14,578.54 and the S&P gained 6.34 (0.41%) to 1569.19, but the chart patterns abide unchanged: megaphone widening out to gobble down investors' hopes, and a market stalled for the last 11 days, unable to make meaningful headway despite the token new tops.

Considering my views on the stock market, y'all can understand why the Federal Reserve won't hire me for the Board of Governors.

Ya'll know that I am watching more closely, as more worthy of attention. the Dow in Gold and the Dow in Silver. Both have stalled, both are tracing out tops, painfully slow. Those tops are also megaphones or Jaws of Death.

Dow in Gold closed at 9.13 oz (G$188.73 gold dollars) but in spite of a new Dow high did not reach a new high. Same holds true for the S&P500 in gold.

Dow in Silver did make a new high today, at 513.87 oz. This brings it up against long term overhead resistance. Could mark the top of the move.

We will be closed tomorrow to observe Good Friday, so I am giving y'all the weekly summary today.
May God bless you all at Easter and always with all Christ's tender mercies.

Y'all enjoy your weekend!

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.