Tuesday, September 24, 2013

The Gold Price Lost $10.90 Ending the Day at $1,316.00

Gold Price Close Today : 1316.00
Change : -5.60 or -0.42%

Silver Price Close Today : 21.539
Change : -0.266 or -1.22%

Gold Silver Ratio Today : 61.098
Change : 0.489 or 0.81%

Silver Gold Ratio Today : 0.01637
Change : -0.000132 or -0.80%

Platinum Price Close Today : 1425.90
Change : 0.00 or 0.00%

Palladium Price Close Today : 718.35
Change : 3.06 or 0.43%

S&P 500 : 1,697.42
Change : -4.42 or -0.26%

Dow In GOLD$ : $240.88
Change : $ (0.02) or -0.01%

Dow in GOLD oz : 11.652
Change : -0.001 or -0.01%

Dow in SILVER oz : 711.95
Change : 5.62 or 0.80%

Dow Industrial : 15,334.59
Change : -66.79 or -0.43%

US Dollar Index : 80.590
Change : 0.137 or 0.17%

Silver and GOLD PRICES closed lower today, but without much effect on the charts, which have traded sideways for two days. SILVER lost 26.6 cents to 2153.9. Gold misplaced $10.90 and ended Comex at $1,316.00. In the aftermarket they are trading $1,323 and 2167.5c, little lower than yesterday.

What do you make of markets like these? On an end-of-the-day chart, not Comex closes, gold has actually bounced up today and closed 50 cents higher. More, it has bounced off an uptrend line from the June low.

If the GOLD PRICE is so weak, why doesn't it break down? Where are all the sellers hiding. Of course, that it hasn't broken down YET doesn't guarantee that it won't break down at all. Still, it made a low today at $1,312.35 and seems to strengthen whenever it drops down around $1,315 - $1,305.

Maybe silver made an upside down head and shoulders and completed it in early August, maybe it's completing the bottom of a right shoulder presently. Whichever, as long as it can hold on about 2130c (low today 2144.2c), it's still flying like a bumblebee.

If silver and gold prices did not bottom on 27 June and intend one last push down, we will see it by end-October. Otherwise, it's a little hard to picture that the goofs and incompetents in Washington won't drive gold up with their debt ceiling squabble.

Y'all will get a kick out of this. Bloomberg reports that US regulators are investigating how trading in gold financial instruments in New York and Chicago happened so fast after the release of the FOMC statement last week. Trading in gold futures and ETFs intensified within one millisecond of 2:00 pm Eastern Time on 18 September. Buddy, them folks have some reflexes if they can read that statement and hit that button within one millisecond, especially when it takes 7 milliseconds to travel to Chicago from Washington, where the FOMC statement is released.

What's that? Somebody leaked the statement in advance to traders who might profit? Why, perish the thought! Surely y'all wouldn't tarnish the reputation of our Nice Government Men by thinking such thoughts!

Friends, it's ALL for sale, and it's all bought and sold.

'Pears that this time around the debt ceiling debacle is depressing all markets, even gold. Me, I'd be happy as a hog in slop if they all locked horns and the yankee government went out of business come 1 October. What would happen? They would stop sending out "swarms of Officers to harass our people, and eat out their substance"? Stop "keeping among us, in times of peace, Standing Armies"? Stop "subjecting us to a jurisdiction foreign to our constitution, and unacknowledged by our laws, giving assent to their acts of pretended legislation"? Stop "imposing taxes on us without our consent"? Stop "abolishing our most valuable Laws, and altering fundamentally the Forms of our government"?

So, exactly how would we lose by that?

But back to markets. Stocks keep inching toward their 50 Day Moving Averages (15,300 and 1,679). The Dow peeled off 66.79 points (0.43%) for a close at 15,334.59. S&P500 scraped off 4.42 points (0.26%) to land at 1,697.42.

Dow in gold is playing above its 50 DMA, still falling. Ended today practically unchanged at 11.652 oz (G$240.58 gold dollars).

Dow in silver just hit its 50 DMA yesterday, peeked through it today. 50 DMA stands at 707.78, Dow in Silver closed at 711.95 oz, up 0.8% or 5.62 oz.

Big Picture: In May both indicators broke upwards through their ca. 14 year downtrend lines, rallied to a high on 27 June, rolled over, then dropped like a hammer in a beer vat. Toward the end of August both hit their long term downtrend lines, and bounced up in a reaction that has recovered 1/2 to 2-3 of the fall. About time for that reaction to end. Still need both to close below their long term downtrends to breathe completely freely.

No slightest facet of the US dollar index chart inspires confidence or optimism, except statements like, "Well, at least the bottom hasn't fallen out yet!" Dollar gained 13.7 basis points (0.18%) today and ended at 80.590. Should the dollar index fall through 79.5, twill look like a man trying to swim with a 200 lb. anvil for a life preserver.

All that love fest for the euro that poured out of Ferkel's election victory washed away pretty quick. Euro today closed $1.3473, down 0.15% and back beneath its upper channel trading boundary. If I had to name a candidate as catalyst for the next financial panic, it would be the Eurozone. Just bear in mind, a mountebank remains a mountebank even if he speaks Italian or French. A central banking criminal by any other name . . .

Yen rose 0.9% to 101.28 cents/Y100. Directionless. Both Gold in euros and gold in Yen have established and thrice tested uptrends, by the way.

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.