Friday, September 20, 2013

Silver and Gold Prices Ended the Week Higher — Gold Price Closed at $1,332.50

Gold Price Close Today : 1,332.50
Gold Price Close 13-Sep-13 : 1,308.40
Change : 24.10 or 1.8%

Silver Price Close Today : 21.876
Silver Price Close 13-Sep-13 : 21.67
Change : 0.206 or 1.0%

Gold Silver Ratio Today : 60.912
Gold Silver Ratio 13-Sep-13 : 60.378
Change : 0.53 or 0.9%

Silver Gold Ratio : 0.01642
Silver Gold Ratio 13-Sep-13 : 0.01656
Change : -0.00014 or -0.9%

Dow in Gold Dollars : $ 239.70
Dow in Gold Dollars 13-Sep-13 : $ 242.93
Change : -$3.23 or -1.3%

Dow in Gold Ounces : 11.596
Dow in Gold Ounces 13-Sep-13 : 11.752
Change : -0.16 or -1.3%

Dow in Silver Ounces : 706.30
Dow in Silver Ounces 13-Sep-13 : 709.56
Change : -3.25 or -0.5%

Dow Industrial : 15,451.09
Dow Industrial 13-Sep-13 : 15,376.06
Change : 75.03 or 0.5%

S&P 500 : 1,709.91
S&P 500 13-Sep-13 : 1,687.99
Change : 21.92 or 1.3%

US Dollar Index : 80.454
US Dollar Index 13-Sep-13 : 81.470
Change : -1.016 or -1.2%

Platinum Price Close Today : 1,432.10
Platinum Price Close 13-Sep-13 : 1,443.60
Change : -11.50 or -0.8%

Palladium Price Close Today : 720.30
Palladium Price Close 13-Sep-13 : 697.50
Change : 22.80 or 3.3%

For a week that wore so hard on the nerves and posted such big jumps Wednesday, it showed little difference in the end. For the week silver and GOLD PRICES, which starved my ego today and fed my humility, in fact ended higher by 1% and 1.8%. Yes, higher. Stocks rose, but the Dow rose only one-half percent and the S&P500 1.3%. The white metals, platinum and palladium, gainsaid each other, platinum lower and palladium higher. Biggest loser was the dollar index, where a 1.2% loss is a big move, and punctured long established support.

Silver and GOLD PRICES acted just like the stock market today, giving up most of the gains from Wednesday. Silver gained 8% yesterday, and gave up 5.9% or 136.6 cents today to close Comex at 2187.6 cents. Gold gained 4.7% yesterday, and lost 2.7% today, or $36.90 closing at $1,332.50.

I am tempted to say gold's failure to hold above $1,350 support dooms it to a large fall. That was terrible behavior. Then I look at the chart. Last low hit $1,291.50. Support lies at $1,325 and just above $1,300. I stared longer. Last three days might mark the beginning of a long down leg that runs to $1,240 or even lower. But then again, it might be only the bottom of the first leg up in a new upleg. The former is more likely, but the latter is possible. MACD and RSI are neutral. The gold price also stands below its 50 DMA ($1,342.56), another negative.

The SILVER PRICE, on the other hand, at 2187.6c stands above its 2170c 50 DMA. If I were silver and filling out an upside down head and shoulders, I'd do exactly what silver has done. But if silver closes below the last low at 2126, that formation will be ruled out.

In the end, both silver and gold prices stand at the same crossroads. If the gold price falls through $1,291.50 and the silver price through 2125c, they will drop toward $1,240 and 1900c. If they break not those marks, they will turn and climb.

Come to think of it, the present debt ceiling war between Bernard O'Bama and the Lilliputian congress might provide enough hot air to draft gold up.

First two days of next week are critical. If silver and gold prices hold, they'll rally. If not, they could decline into an October low.

How'd y'all like that taste of Federal Reserve stability this week? Right, the Fed stabilizes like a tornado. Wednesday the markets that supposedly thrive on a weak dollar soared on the FOMC's announcement they would not be tapering any time soon, say, before the 21st century ends. Think of it this way: yesterday Ben Bernanke sent a personal note to you, me, and everybody in the US reading, "We are going to keep on creating money -- lots of money."

Wherefore, burn this bottom line into your brain: gold and silver will rise. After this indecision ends, probably by the time October expires, gold and silver will begin a rally that will reach far higher, and move faster, than anything you've seen so far. You have Ben Bernanke's word on it.

Stocks stumbled badly today. Dow lost 185.44 (1.19%) to 15,451.09 while the S&P500 gave up 12.43 (0.72%) to 1,709.91. This leaves a really stinking Big Bird footprint on the chart: bit jump Wednesday, little toe of a fall yesterday, big fall today taking them below where they started. Feels very toppy and sets up stocks for visit to 50 day moving averages (15,305 and 1679).

After yesterday's sharp fall, the Dow in Gold and Dow in Silver rose a bit today, but remain firmly in a downtrend from the June Highs. Odd -- the Dow in gold is above its 50 DMA (11.42 oz) but the Dow in Silver remains below its 50 DMA (710.57 oz). Dow in gold today rose 1.5% to 11.596 oz (G$239.70 gold dollars). Gaining 5%, the Dow in silver added 33.36 oz to end at 706.30.

US Dollar Index gained 11.1 basis points (0.14%) today but did nothing to prettify its hair-raising chart. Wednesday's fall dragged the dollar index under water. It punctured support that had held since May 2011. Dollar index has a chance of catching at 79.50, but beneath that it will fly like an anvil pushed out of a 747 Jumbo Jet.

Wednesday the euro punched through resistance stretching back to February of this year, poked its head around, and fell back to that line. Today the euro lost a piddling 0.08% to end at $1.3523. Should the euro not fall back through that resistance, 'twill point toward $1.3700.

Japanese yen keeps trading sideways, carefully managed, I reckon, by the Japanese Nice Government Men. Gained 0.14% today to 100.68 cents/Y100.

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.