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Tuesday, April 23, 2013

The Gold Price Fell $12.40 Can it Hold Above $1,400?

Gold Price Close Today : 1408.60
Change : -12.40 or -0.87%

Silver Price Close Today : 22.813
Change : -0.507 or -2.17%

Gold Silver Ratio Today : 61.745
Change : 0.811 or 1.33%

Silver Gold Ratio Today : 0.01620
Change : -0.000215 or -1.31%

Platinum Price Close Today : 1416.80
Change : -19.00 or -1.32%

Palladium Price Close Today : 672.15
Change : -8.60 or -1.26%

S&P 500 : 1,578.78
Change : 16.28 or 1.04%

Dow In GOLD$ : $216.01
Change : $ 7.50 or 3.60%

Dow in GOLD oz : 10.450
Change : 0.363 or 3.60%

Dow in SILVER oz : 645.22
Change : 20.56 or 3.29%

Dow Industrial : 14,719.46
Change : 152.29 or 1.05%

US Dollar Index : 83.01
Change : 0.352 or 0.43%

Today the GOLD PRICE lost $12.40 (0.9%) to $1,408.60 but silver stumbled 50.7 cents (2.2%) to 2281.3c.

The GOLD PRICE today ran out of shorts covering, hit $1,427, and busted its nose on the wall. Well, it wasn't that bad since gold found footing about $1,406.70 and didn't offer to break lower. This is that first reaction after five rising days, as I mentioned yesterday. Gold is trying to turn up, at least the MACD is, but lets see how it deals with more hostility in a correction. Can it hold above $1,400?

The SILVER PRICE is flirting with last week's 2255.6c low. Today it hit 2265.9c, dropped 50.7c, and volume rose. Not a promising mixture. Could get slammed hard tomorrow. Of course, how it withstands that will tell us a lot about how long this pain will last.

R.I.P, Howard Phillips. At age 72 he passed peacefully away on 20 April. In his long life working in and around politics, he was the anomaly: he always put principles before politics or personal advancement. Nixon named him head of the Office of Economic Opportunity, then welched on his promise to shut it down, so Howard resigned. In 1974 he left the Republican party because it had failed to uphold conservative principles.

All of these things mark Howard Phillips as an exceptional man, but he stands out in my heart for another reason. When the IRS was trying to bury me because I had started a gold and silver bank, and the whole world was running away from me as fast as their chicken legs could carry them, Howard Phillips never did. He was a man of magnificent integrity.

TODAY'S MARKETS:

Another tedious day.

Stocks turned and rallied largely. Dow rose 1.05% (152.29) to 14,719.46 while the S&P500 rose 1.04% (16.28) to 1,578.78. Both closed above their 20 day moving averages. Unless the Dow can close above the last high (14,887.51) this will remain a reaction in a downtrend from that high.

Dow in gold broke its five day downtrend by rising today to 10.42 oz (G$215.40 gold dollars). This doesn't alter the downtrend, only zigs against its zag -- normal reaction. Dow in Silver rose, too, to 641.93 ounces (+2.3%). It's more equivocal than gold, but still appears to have topped.

US dollar Index rose to 83.005, up 35.2 basis points or 0.45%. Dollar got a boost overnight in European trading, jumping from 82.50 to 82.95 in half an hour while all the hyenas in New York were still sleeping. In US trading it oscillated from 82.85 to 83.05. A strong close above 83 takes the dollar into a new upleg.

Euro ate something that didn't agree with it and looks sick. Closing at $1.3000 (down 0.49%) today, it's below its 50 DMA ($1.3058) and barely above its 20 DMA ($1.2985). Nor is the 200 DMA far off, at $1.2903. A fall through $1.3000, which looks certain for tomorrow, with scatter all the euros fans and attract the short sellers.

Yen remains flat, down today 0.18% at 100.57 cents/Y100.

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

- Franklin Sanders, The Moneychanger
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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.