Wednesday, September 04, 2013

Gold Price Lost 1.6 Percent Ending at $1,389.90

Gold Price Close Today : 1389.90
Change : -22.10 or -1.57%

Silver Price Close Today : 23.369
Change : -1.013 or -4.15%

Gold Silver Ratio Today : 59.476
Change : 1.565 or 2.70%

Silver Gold Ratio Today : 0.01681
Change : -0.000454 or -2.63%

Platinum Price Close Today : 1493.80
Change : -43.50 or -2.83%

Palladium Price Close Today : 696.60
Change : -19.60 or -2.74%

S&P 500 : 1,653.08
Change : 13.31 or 0.81%

Dow In GOLD$ : $222.07
Change : $ 4.89 or 2.25%

Dow in GOLD oz : 10.742
Change : 0.237 or 2.25%

Dow in SILVER oz : 638.92
Change : 30.52 or 5.02%

Dow Industrial : 14,930.87
Change : 96.91 or 0.65%

US Dollar Index : 82.144
Change : -0.232 or -0.28%

Silver and GOLD PRICES gave back all that spongy jump they gained yesterday. Stocks rose a bit more strongly -- if that proves anything, it's that the nearer certainty of war is good for the American economy in the market's eyes. Wow. That's a heart-stopper. Dollar drooped, but it probably doesn't mean anything much.

I'm getting conflicting messages for silver and GOLD PRICES. The five day chart appears to have completed a leg down today, or might have one additional small leg-of-a-leg to go. Completed, as in "no further to drop." Yet in an A-B-C correction, you'd expect the C-down to drop lower than the bottom of A-down, but sometimes in VERY strong markets that doesn't happen. It's further complicated because many times corrections extend sideways and repeat. Still I suspect this correction may reach $1,350 still, and maybe 2250c in silver.

Today the SILVER PRICE lost 101.3 cents (4.2%) to end Comex at 2336.9c, versus gaining 91.9 cents yesterday. The gold price lost $22.10 (1.6%) to end at $1,389.90. Yesterday it had gained $15.90. Thus all yesterday's gains were simply wheel-spinning that got no traction.

Correction -- that's what it's all about, correcting the excess of a previous move.

Both the S&P500 and the Dow are approaching downtrend lines. Dow gained 0.65% today (96.91) to 14,930.87. S&P500 rose 0.81% (13.31) to 1,653.08. For the S&P500 that fills a gap left behind when it fell. Downtrend line today looms above about 1,675, along with the 50 and 20 day moving averages (1,663.13 and 1,660.69). Dow's downtrend line blocks its progress about $1,525, way below the 20 DMA (15,082.25) or the 50 DMA (15,245).

I suspect stocks have completed their long correction from the first of August, but even if that's true, they will bounce off that downtrend line first try.

Stocks measured in silver and gold are rising, but nothing to brag on. Dow in gold gained 2.25% to 10.742 oz (G$222.07 gold dollars). Dow in Silver gained 30.52 oz (5.02%) to 638.92 oz.

After their long, steep fall a reaction upward is predictable. Both had become astonishingly oversold, so no surprise has caught us here.

US dollar index tumbled 0.30% today, 23.2 basis points, to 82.144. Noise. Signifieth nothing, only the dollar falling back towards where it broke out for that last good-bye kiss.

Euro bounced today off its 200 DMA and rose 0.29% to $1.3139, yet this, too, is vanity. Gravity has the euro in its relentless, merciless grip, and will not be disappointed.

Yen paused today at 100.15 cents per Y100, absorbing the shock of breaking down out of the uptrend and building inertia to break through 100 cents.


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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.