Friday, August 09, 2013

Silver and Gold Prices Ended the Week Higher — Gold Price Closed at $1,310.60

Gold Price Close Today : 1,312.90
Gold Price Close 2-Aug-13 : 1,310.60
Change : 2.30 or 0.2%

Silver Price Close Today : 20.399
Silver Price Close 2-Aug-13 : 19.903
Change : 0.496 or 2.5%

Gold Silver Ratio Today : 64.361
Gold Silver Ratio 2-Aug-13 : 65.849
Change : -1.49 or -2.3%

Silver Gold Ratio : 0.01554
Silver Gold Ratio 2-Aug-13 : 0.01519
Change : 0.00035 or 2.3%

Dow in Gold Dollars : $ 242.88
Dow in Gold Dollars 2-Aug-13 : $ 246.98
Change : -$4.10 or -1.7%

Dow in Gold Ounces : 11.749
Dow in Gold Ounces 2-Aug-13 : 11.947
Change : -0.20 or -1.7%

Dow in Silver Ounces : 756.19
Dow in Silver Ounces 2-Aug-13 : 786.73
Change : -30.54 or -3.9%

Dow Industrial : 15,425.51
Dow Industrial 2-Aug-13 : 15,658.36
Change : -232.85 or -1.5%

S&P 500 : 1,691.42
S&P 500 2-Aug-13 : 1,709.67
Change : -18.25 or -1.1%

US Dollar Index : 81.117
US Dollar Index 2-Aug-13 : 81.901
Change : -0.784 or -1.0%

Platinum Price Close Today : 1,499.00
Platinum Price Close 2-Aug-13 : 1,450.60
Change : 48.40 or 3.3%

Palladium Price Close Today : 740.65
Palladium Price Close 2-Aug-13 : 728.80
Change : 11.85 or 1.6%

Today the GOLD PRICE polished off a well played week with another little rise, up $2.20 to $1,312.90. Silver jumped 21.5 cents to 2039.9c, highest close since July 22.

Despite efforts to crush it down early in the day, by 11:00 the gold price had fended them all off and crossed above yesterday's close. Soon reached a high of $1,313.10, but backed off slightly toward the close to end at $1,312.90. You, there! Don't go getting all starry-eyed -- gold price still hasn't closed ABOVE its 50 DMA ($1,315.58) which it must do. This week was great -- trading down to a $1,271.80 low, key reversing yesterday and today, all just pretty as a new puppy, but the GOLD PRICE must improve those gains.

Next roadblocks fall at $1,350, then $1,487 to $1,500. And by the way, a close above that 50 DMA will also take gold above the downtrend line from May, so a move through $1,325 is liable to pop fast.

It would say mighty things about the strength underlying metals if silver led a rally up.

Now the SILVER PRICE broke through its 50 DMA (2030c) AND the May downtrend line, just poked its head up their like a turtle looking for a sunny log. Meanwhile volume is pushing up. MACD has turned up. 12 day and 21 day rates of change have turned up. About time something happened. Silver's so far below its 200 DMA it needs a telescope to spy it.

That's all right, the silver price can zip like a Roadrunner when it wants. For now, let's calm down and think. Needs to climb above the last breakdown about 2150c, then reach 2500c. Seasonally, silver has often seen the end of a corrections or beginning of a new move up in August.

All these witnesses are lining up to testify that the June 27 lows were the bottom for silver and gold prices. Hold it! Bear in mind that both must ADVANCE from here, no slouching. And any close below this week's lows wipes out all this optimism.

But all in all it appears that the long correction from 2011 had ended. The best part of the bull market, with the greatest gains, lies before us. Assuming silver and gold continue advancing next week, stop waiting and buy.

Whoa! One last thing -- GOLD/SILVER RATIO today closed at 64.361. If you want to swap gold for silver, your time rapidly is running out.

'Twas a heavy week for stocks, laden with tears, and the US dollar index shared their sorrow. On the other hand metals danced and sang. Platinum ran hog wild. About time.

Yeeee-haw! [Y'all will have to substitute in your minds a Rebel Yell for that. I don't know how to spell a Rebel Yell, just know how to yell one.] Look at that Dow in Silver! It sank 1.5% today, down 11.66 oz to 740.10 oz., down 1.5% today alone and 3.9% for the week AND hovering just above its 50 day moving average (754.23).

Dow in Gold isn't nearly as sprightly as Dow in Silver, but don't sneer. It fell 0.6% today to 11.749 oz (G$242.88 gold dollars), below its 20 DMA (11.87 oz) but still above the 50 DMA (11.64 oz) -- O, gravity, sweet gravity! A close below 10.55 oz will take the DiG back below the long term downtrend and I can breathe easy again.

Stocks in dollar terms had a rough day. At the low the Dow had lost 151.67, but it came back to close losing "only" 72.81 or 0.47%. S&P500 gave back that six points it had gained yesterday -- down 6.06 (0.36%) to 1,691.42.

Stand ye back, and ponder this perspective: stocks now are undergoing a correction that will reach the 50 DMA (1,652.36) at least, maybe lower. Might go lower, but afterwards comes the last, last push to an all time high and completion of that gigantic Broadening Top/Jaws of Death formed since 1997. Then the smash-up.

US dollar index had better stop at 80.50, the June low. If not, 'twill tumble, twist, and plummet toward 79, where it must grab hold or die. The Euro is reaching the $1.3450-ish top of its range, and therefore is a candidate for reversing. Lost 0.31% to $1.3333 today. Yen left behind a breakaway gap three days ago, and gained 0.47% today to 103.9c/Y100. Headed up, but who wants to ride a horse like that?

Y'all enjoy your weekend!

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.