Wednesday, August 21, 2013

Gold Price Lost $2.50 to End at $1,370.60

Gold Price Close Today : 1370.60
Change : -2.50 or -0.18%

Silver Price Close Today : 22.958
Change : -0.108 or -0.47%

Gold Silver Ratio Today : 59.700
Change : 0.171 or 0.29%

Silver Gold Ratio Today : 0.01675
Change : -0.000048 or -0.29%

Platinum Price Close Today : 1518.20
Change : -6.40 or -0.42%

Palladium Price Close Today : 746.00
Change : -2.75 or -0.37%

S&P 500 : 1,652.80
Change : -9.55 or -0.57%

Dow In GOLD$ : $224.69
Change : $-1.18 or -0.52%

Dow in GOLD oz : 10.869
Change : -0.057 or -0.52%

Dow in SILVER oz : 648.90
Change : -1.53 or -0.24%

Dow Industrial : 14,897.55
Change : -105.44 or -0.70%

US Dollar Index : 81.273
Change : 0.328 or 0.41%

The GOLD PRICE forked over $2.50 to end at $1,370.60 while the SILVER PRICE coughed up 10.8 cents to close Comex, where the tape is always well painted, at 2295.8c.

I would prefer that silver and GOLD PRICES pull up and away from these levels, but they're taking their sweet time digesting the Brobdingnagian gains of the past two weeks. Today's down-then-up action upon the FOMC minutes I interpret as strong. Gold's $1,361.20 low came higher than yesterdays $1,355.09 low.

However, this can't go on forever. Time presses both metals to move forward or fall back. Today's action was indecisive, blowing hot and cold out of both sides of its mouth.

That good old "stabilizing" Fed was out there today again doing what it does best, roiling and boiling markets. First stocks and silver and gold prices went down when they heard the FOMC minutes, then gold and silver rose again, about where they had been. Stocks, on the other hand, never recovered. Then late in the day stocks dropped off more.

Trying to parse the hidden meaning in FOMC minutes is like trying to figure out the words to an Inya song. It appears markets could tell not tell from today's minutes whether the Fed will taper soon or not soon or even at all. Lesson everybody is missing? That the stock and bond markets are ADDICTED to Fed money creation, and that's almost as healthy as meth addiction, but not nearly as much fun.

More on the virtues and benefits of centralization and computerization. Goldman Sachs computer went haywire someway on Tuesday and flooded the stock options market with mistaken orders. Goldman Sachs, which has almost as much integrity as NY mayoral candidate Anthony Wiener, experienced the glitch along with four other specialists.

Enough of this fun. What else happened today?

Stocks lost badly. S&P500 coughed up 9.55 (0.58%) to land at 1,642.80. Dow broke 15,000 and morale by falling 105.44 (0.7%) to 14,897.55.

Chart now appears to say that the last few days pause was not a reversal but merely the halfway mark of the dive. Now seems certain the Dow will strike 14,650 and the S&P500 something near 1,590. I've been expecting another rally toward year end, but if the indices drop through those levels I'll have to re-think and call those May and August tops a "double top." Can't tell yet, though.

If the Dow in Gold and the Dow in Silver were people I'd kiss 'em. They are so reliable when everything else is lying and hem-hawing.

Dow in gold dropped 0.52% today (gold dropped, but stocks dropped faster and further) to 10.869 oz (G$244.69 gold dollars), lighter than yesterday by 0.52%. Plunging through space the Dow in Silver fell 0.24% or 1.53 oz to 648.90 oz.

US dollar index is stymied at 81.40. Today it did climb back above 81 to 81.273 (up 32.8 basis points or 0.42%). Better, but not the sort of action that triggers a mad rush to buy dollars.

Euro gave the lie to yesterday's gap-up rise by posting a lower low for the move with a lower close, first half of a key reversal. Tumbled 0.48% to $1.3354. Perky as Superman shoveling Kryptonite.

Yen lost 0.40% to 102.42 cents/Y100. Closed right at its 20 DMA, trying to break down.

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.