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Thursday, July 18, 2013

Gold Price Closed Above its 20 Day Moving Average at $1,284.60

Gold Price Close Today : 1284.60
Change : 6.70 or 0.52%

Silver Price Close Today : 19.376
Change : -0.033 or -0.17%

Gold Silver Ratio Today : 66.299
Change : 0.458 or 0.70%

Silver Gold Ratio Today : 0.01508
Change : -0.000105 or -0.69%

Platinum Price Close Today : 1413.30
Change : 1.70 or 0.12%

Palladium Price Close Today : 746.40
Change : 12.05 or 1.64%

S&P 500 : 1,689.37
Change : 8.46 or 0.50%

Dow In GOLD$ : $250.21
Change : $ (0.05) or -0.02%

Dow in GOLD oz : 12.104
Change : -0.002 or -0.02%

Dow in SILVER oz : 802.46
Change : 5.38 or 0.68%

Dow Industrial : 15,548.54
Change : 78.02 or 0.50%

US Dollar Index : 82.783
Change : 0.097 or 0.12%

Whoa, wait a minute! Silver and GOLD PRICES were supposed to follow through downside after yesterday's dip, but they didn't. In fact, gold rose $6.70 to $1,284.60 and silver fell 3.3 cents to 1937.6c. Yet here in the aftermarket they are trading at $1,286.30 and 1948c.

What meaneth this? It could be a sign of strength, if both were driven to the bottom of their trading range, silver even further, yet they didn't break down the next day. Gold remains above its 20 DMA ($1,259.48) and silver nearby (1944c). Gold's 12 day rate of change remains positive at 2.38% (good sign, but slowing), but the SILVER PRICE has dipped below zero at -0.69% (not a good sign). We'll just have to wait to see what the market tells us tomorrow.

Stocks continue their feeding mania. Dow rose 78.02 (0.5%) to 15,548.54 and the S&P500 trailed right along, rising 8.46 (0.5%) to 1,689.37.

Dow in gold was basically flat, down 0.02% to 12.104 oz (G$250.21 gold dollars), but Dow in silver rose 0.68% or 5.38 oz to 802.46 oz.

Whatever 'twas the Bernancubus said yesterday, it helped the dollar index today. It rose 9.7 basis points (0.12%) to 82.783. I mistrust, however, that gap it left getting down here, and it abides below its 20 DMA. Expect lower prices before the dollar turns around with a will -- but this is all short term stuff. Dollar remain in intermediate term rally mode.

Yen fell 0.87% to 99.56 cents/Y100, fairly wrecking its short term uptrend. Euro lost only 0.11% to $1.3110, still in a short term uptrend.

I suspect Bernanke's main goal this week was to talk down interest rates (or talk up the bond market, as interest rates move opposite to bond prices). He has fallen into his own trap, and blown up the Grendel's mother of all bubbles in US bonds. He has forgotten Hippocrates' first rule, the one that other generations of central bankers always observed religiously: first, do no harm. Hard as it is to conceive, playing "Masters of the Universe" he and his trolls have actually created a bubble big enough to bring down the US dollar. I'd rather have a gas station manager, a genuine businessman in charge. At least he'd know not to water down the gasoline.

I'm travelling today so must make this short. My wife's hungry, and my main goal in this life is to keep her well fed and happy, so I've got to find her something to eat.

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

- Franklin Sanders, The Moneychanger
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© 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.