Buy Gold and Silver How to Buy Gold How to Buy Silver Gold Commentary

Monday, April 01, 2013

The Gold Price Closed Dead on $1,600.00 Remains Above it's 20 DMA

Gold Price Close Today : 1600.00
Change : 5.20 or 0.33%

Silver Price Close Today : 27.913
Change : -0.379 or -1.34%

Gold Silver Ratio Today : 57.321
Change : 0.952 or 1.69%

Silver Gold Ratio Today : 0.01745
Change : -0.000295 or -1.66%

Platinum Price Close Today : 1596.40
Change : 25.20 or 1.60%

Palladium Price Close Today : 782.80
Change : 15.70 or 2.05%

S&P 500 : 1,562.17
Change : -7.02 or -0.45%

Dow In GOLD$ : $188.28
Change : $ 7.50 or 4.15%

Dow in GOLD oz : 9.108
Change : 0.363 or 4.15%

Dow in SILVER oz : 522.08
Change : 6.79 or 1.32%

Dow Industrial : 14,572.85
Change : -5.69 or -0.04%

US Dollar Index : 82.73
Change : -0.402 or -0.48%

The silver and GOLD PRICE gainsaid each other today. Silver fell 37.9 cents to 2791.3 at Comex close, gold rose $5.20 to $1,600.00 (dead on).

Both markets could barely fog a mirror today. Gold range was less than $5 -- $1,600.76 to $1,595.18 -- while silver ranged 33 cents from 2788 to 2821. Are they alive? Barely.

The GOLD PRICE closed very oddly at $1,600. It did rise, and it remained the whole day above its 20 DMA ($1,596.30). Last week's fall occurred on falling volume, a good sign. So far Gold has weathered attacks that drove it to $1,591. Whether one further attack might breach that line of defense remains to be seen.

The SILVER PRICE today closed right at the 1 March 2013 low. Tomorrow won't be equivocal: 'twill either follow through lower, or bounce up off that low.

If silver continues to fall, it might drop to 2700 cents, even 2650c. Gold might hit $1,570, or even $1,550 if it falls.

The GOLD/SILVER RATIO hit the top of a rising wedge today with a close at 57.321, highest so far this move. Higher that ratio moves, close we come to a reversal upward for silver and gold.

Must be time to tuck tail and run, huh? Silver and gold struggling, and sentiment universally negative? Not at all. Time to keep your head and look to buy more. If metals intend to break, it will happen this week. But that ax cuts both ways: they could also reverse dramatically. For today, though, odds favor lower to sidewise prices.

Silver and gold are close enough to a bottom and Europe close enough to dismemberment that waiting longer to buy becomes a real crap shoot. This is no time to stay bearish on metals.

In some European countries Easter Monday is still a holiday, so maybe that's what tamed markets today. They were mighty calm, whatever the cause.

Dow pushed up to a new intraday high at 14,605.72, but ended the day 5.69 (0.04%) lower at 14,562.17. Five day chart could be paying to gather strength for another upward move, or rolling over. Lines in the sand are 14,550 and 14,400.

S&P 500 lost 7.02 (0.45%) to end at 1,562.17. Both indices remain within broadening top or megaphone formation, so there's a downside break coming, whether before or after higher prices.

Dow in Gold and Dow in Silver have diverged. Dow in Gold closed lower today, and resistance about 9.11 oz (G$188.32 gold dollars) held. Closed at 9.10 oz (G$188.11), down 0.28%.

On the other hand, last Thursday the Dow in Silver closed above the top boundary of that megaphone but not through longer-term support. Today it jumped up 1.48% to 512.50 ounces. Around 525 ounces it meets very strong resistance.

The scrofulous US dollar, scabby but still the world's reserve fiat currency, lost 40.2 basis points (0.52%) today, tumbling back from Kryptonite resistance at 83 to end 82.727. Looks to be rolling over, but remember that the US dollar is widely considered to be the "safe haven" currency, however loudly that contradicts reason and common sense. (Markets do have to make sense, and often don't.) Thus another scare in Europe could send money running into dollars.

The euro today rose 0.25% to $1.2850, leaving a gap between it and last Wednesday's intraday low at $1.2751. That $1.2800 level is the morale breaker. Euro remains below its 200 day moving average, roughly the equivalent of scuba-diving while wearing anvils tied to both ankles.

Long since have I renounced trying to make sense of the Japanese yen. It appears to have spent 2/3 of March making a sort of bottom, and climbing, however microscopically, upward. Today it gained 0.88% to 107.14 and touched its 50 day moving average. Maybe it will climb more, but who would take a risk on it?

Many thanks to all of you Facebookers who responded to my request to visit the At Home in Dogwood Mudhole page at http://on.fb.me/YfMj09 and like or share it. I deeply appreciate your kind help.

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

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com
1-888-218-9226
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.