Gold Price Close Today : 1,283.20
Change : -19.40 or -1.49%
Silver Price Close Today : 19.52
Change : -0.20 or -1.00%
Gold Silver Ratio Today : 65.73
Change : -0.33 or 0.50%
The GOLD PRICE dove $19.40 (1.49%) to $1,283.20 while silver lost only 19.6 cents (0.99%), about what it gained yesterday, to 1951.5c. Back to the charts.
Gold day before yesterday made a low at $1,285 & today at $1,284.24. Below is support from about $1,270 up. The GOLD PRICE has fallen below its 20 DMA ($1,305.16), the MACD is rolling over, and so is the RSI. All points to lower prices.
Reversing their usual roles, the SILVER PRICE has lately been less volatile than gold. Today's dip left silver above 1950 support and not too far below its 20 DMA (1982c). More support awaits at 1922c. MACD is flat, as is RSI.
If more weakness or another plunge lies in store for metals, 'twill probably come knocking soon. Of course, if they hang on here for a few days, that would whisper strength.
Looks like all the buyers across the markets have left on vacation. Stocks dropped today, dollar index dropped, silver & gold dropped. Gravity had a field day.
Dow Jones Industrial Average tumbled 93.39 (0.6%) and closed at 15,518.74. S&P500 was not far behind, losing 9.77 (0.57%) to 1,697.37. That close took the Dow below its 20 DMA (15,522) and out of the channel line. S&P500's 20 dma (1,688.14) is right at its uptrend channel's bottom boundary, & it didn't quite meet that. MACD & RSI have turned down. Looking like a heavy buzzard searching for a low limb to roost.
Dow in gold has turned up, but remains below its 12.51 oz June high. It rose today 0.9% (gold fell more than stocks) to end at 12.094 oz (G$250.00 gold dollars). Above the 20 DMA, above the line where it broke down. Must change directions very quickly or risk another uptrend.
Dow in silver added only 0.4% to 795.22 oz, against a June high of 816.77 oz. Rate of change remains, however, negative. Talking out of both sides of its mouth.
Meanwhile to US dollar index rolled over on its back & gave back 23.2 basis points (0.3%). Dependency on Federal Reserve moves has the dollar acting like a schizo, filling its mouth one minute with uppers & the next with downers. Technically it's floating near its 200 Dma (81.55) and failed in its latest attempt to climb above 82 and its 50 DMA (82.55). Strong as skimmed milk.
Euro rose 0.37% to $1.3308, but 'tain't nothing to brag about, either. Has broken through its uptrend line & looks to be making a double top. Makes you think of the question, "What comes next after you open a second story window and step out?"
The yen, on the other hand, the only world currency to have announced its hari-kari in advance, is rising away. Gained 0.57% today to 102.35 cents/Y100. Of course that makes no sense, but welcome to the surreal world run by central bankers. Don't expect no sense because you won't get no sense.
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.
