Tuesday, June 04, 2013

Gold Price Scraped Off $14.60 to Close Comex at $1,397

Gold Price Close Today : 1397.10
Change : -14.60 or -1.03%

Silver Price Close Today : 22.400
Change : -0.315 or -1.39%

Gold Silver Ratio Today : 62.371
Change : 0.222 or 0.36%

Silver Gold Ratio Today : 0.01603
Change : -0.000057 or -0.36%

Platinum Price Close Today : 1489.90
Change : -6.30 or -0.42%

Palladium Price Close Today : 748.85
Change : -7.95 or -1.05%

S&P 500 : 1,631.38
Change : -9.04 or -0.55%

Dow In GOLD$ : $224.56
Change : $ 1.20 or 0.54%

Dow in GOLD oz : 10.863
Change : 0.058 or 0.54%

Dow in SILVER oz : 677.55
Change : 6.01 or 0.90%

Dow Industrial : 15,177.16
Change : -76.87 or -0.50%

US Dollar Index : 82.75
Change : 0.072 or 0.09%

In a trading day as strange as 'tis bogus, the GOLD PRICE scraped off $14.60 to close comex at $1,397.1 while the SILVER PRICE lost 31.5 cents to end at 2240c. In the late aftermarket gold has traded up to $1,400.15 and silver to 2258c.

I say "bogus" because this is very odd trading. Usually markets either make it or break it. If they fail, they follow through downward; if they make a new high, they climb. What do you say about gold? Thursday it had a great up day, bursting through $1,395 resistant to end around $1,415 -- then Friday giving nearly all back? And Monday bouncing right back, but Tuesday having its pockets picket again?

Here's a guess about these last four days. That $1,491-$1,495 level was resistance, but gold shot through it. When it cam back Friday, it fell not through, but stopped at that resistance-now-become-support, $1,392.50. Yesterday it shot back to the top of the range, $1,415, then today fell back, but ratcheted higher with a $1,393.10 close.

Clearly, many happy souls are delighted by the GOLD PRICE at $1,392, while many unhappy souls are delighted to sell $1,415. A tense disagreement exists, and somebody's gonna lose and get a black eye.

Battleground leans back and forth across the 20 DMA ($1,405.55). If the gold price can cross that, it should shoot up to the 50 DMA ($1,461). However, if the Unhappy Ones can drive gold below $1,390, it might break.

No point in pretending to clarity where none is. Momentum indicators are pointing up, gold resiliently keeps popping back, but gold must first prove itself with a jump over $1,425. I am buying modestly but gladly, but can't quite bring myself yet to make a big commitment. I feel the same way a pig, a chicken, and a cow feel about breakfast. The chicken and the cow are involved, but the pig is committed.

Daily I search the news for pleasant or encouraging reports to share with y'all, but daily I only come away with acute hogwash poisoning. I notice that IMF apparatchik Christine Lagarde is warning of "somber trends" developing the world economy. I reckon Christine wants the world's central banks to print up more money, on the theory that although it hasn't worked already, it might work if they do a lot more of it. Akkk! Akkk! I can feel the hogwash poisoning climbing up my gullet!

Stocks were not pleased with anything today. Dow backed off 76.87 (0.5%) to 15,177.16. S&P500, resplendent with GM, which, coming out of bankruptcy or tankruptcy or the government's financial hospital has been re-admitted in the place of ketchup cook Heinz, cheapened by 9.04 or 0.55%.

Grief for stocks will begin when they break their 50 day moving averages (14,904 and 1,603), which roughly coincide with their trading channel bottom lines. Just to give y'all a notion how far away that lies, that's about 273 points for the Dow and about 28 points for the S&P500. Both fell almost that many points on 31 May. And downside points come easier than upside points.

Dow in Gold and Dow in Silver both rose a leetle today, but continue to roll over toward the center of the earth. Dow in gold rose 0.54% to 10.863 oz (G$224.56 gold dollars), not quite breaching the 20 DMA in its close but still in a steady downtrend.

Dow in silver closed 677.55, 6.01 oz or 0.9% higher than yesterday. It also rolleth over. 20 DMA at 667.38.

That US dollar index really smashed its chart yesterday. Closed through the uptrend line AND the 50 DMA, and looks sick as a yellow cat eating bad meat. Oh, today it scrabbled around and climbed 7.2 basis points, which you could almost see with a 10 power microscope. Ended at 82.751. A close below 82.50 will accelerate its weight-loss program.

I ought to be ashamed of myself. Making fun of the scrofulous, no-good, unbacked and spineless fiat currencies. Smacks too much of shooting fish in a rain barrel -- with a 12 gauge shotgun. 'Tain't no hard target to hit.

Anyhow, yesterday's touch on the 50 DMA scairt that yen plumb to death. Today it shrank 0.55% to 99.98 cents/Y100. Euro edged up a microscopic 0.7% to $1.3085. Important to note there is that close lies above and outside the downtrend line, so promises more upside.

By the way, don't forget that the US bond market has broken down, forecasting a lower dollar and higher interest rates. I'm so sorry, Ben.

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.