Tuesday, August 20, 2013

Right Now, Silver and Gold Prices See No Storm Clouds on their Horizon

Gold Price Close Today : 1,373.10
Change : 6.90 or 0.51%

Silver Price Close Today : 23.066
Change : -0.095 or -0.41%

Gold Silver Ratio Today : 59.529
Change : 0.542 or 0.92%

Silver Gold Ratio Today : 0.01680
Change : -0.000154 or -0.91%

Platinum Price Close Today : 1524.60
Change : 16.50 or 1.09%

Palladium Price Close Today : 748.75
Change : -3.25 or -0.43%

S&P 500 : 1,652.35
Change : 6.29 or 0.38%

Dow In GOLD$ : $226.17
Change : $ (1.26) or -0.55%

Dow in GOLD oz : 10.941
Change : -0.061 or -0.55%

Dow in SILVER oz : 651.30
Change : 2.34 or 0.36%

Dow Industrial : 15,022.99
Change : -7.75 or -0.05%

US Dollar Index : 80.902
Change : -0.381 or -0.47%

GOLD PRICE rose $6.90 to $1,373.10. We may yet see one more little dip before they begin rising again in earnest, but much higher prices will appear before any large drop occurs.

I'm beginning to suspect the SILVER PRICE will beat its way clean to 2650c where it fell away in April before this rally ends. It would be surprising if silver could burst through that resistance on the first try.

GOLD PRICE has an upside down head and shoulder that measures a target of $1,550, right where the April massacre began. As with silver, 'twould surprise if it broke down that resistance at the first try.

Right now, silver and gold prices see no storm clouds on their horizon. We ought to see higher prices this week.

I meant to mention that yesterday US interest rates (reciprocal of bond prices) hit a two year high. They backed off a little today, and the dollar of course dropped with them. Ten year note yield ended today at 2.814% while the US dollar index broke 38.1 basis points (0.5%) to 80.902. US dollar index is right at the "fish or cut bait" line where it must either grab hold and reverse or drop as low as 79. Nothing at all attractive about the dollar right now.

Of course, the yen and the euro don't look any better. Both have faces that would curdle the waves on a bucket of slop. Yen rose 0.34% to 102.86 cents/Y100, but still has no bragging rights. Above its 20 and 50 DMAs, but has no momentum at all to speak of. Euro waxed vigorous today, gapped up, probably on some news that in truth hath no substance, but it rose anyway, 0.62% to $1.3421. This marks a new high for the move and puts the euro right at the upper limit of the six month's trading. I reckon it's possible it could burst through $1.3500 and fly, just doesn't seem likely.

Stocks were bewildered today, Dow down, S&P500 up. Dow lost 7.75 (0.5%) to draw as close to closing below 15,000 as it could -- 15,002.99. S&P500 rose 0.38% or 6.29 to 1,652.35. Both remain below their 50 DMAs (15,272.16 and 1,657.65). They have corrected about 40 - 42% of their preceding rise, so might turn around here, but all indicators still point down.

Dow in gold lost 0.55% today to 10.941 oz (G$226.17 gold dollars). Less than half an ounce takes it back under the long term downtrend line, and it shows no sign of turning up.

Dow in silver gained 0.36% or 2.34 oz to close at 651.3 oz. About another 38 ounces takes it below the long term downtrend line.

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.