Monday, September 23, 2013

The Gold Price Lost $5.60 Closing at $1,326.90

Gold Price Close Today : 1326.90
Change : -5.60 or -0.42%

Silver Price Close Today : 21.805
Change : -0.071 or -0.32%

Gold Silver Ratio Today : 60.853
Change : -0.058 or -0.10%

Silver Gold Ratio Today : 0.01643
Change : 0.000016 or 0.10%

Platinum Price Close Today : 1425.40
Change : -6.70 or -0.47%

Palladium Price Close Today : 716.30
Change : -4.00 or -0.56%

S&P 500 : 1,701.84
Change : -8.07 or -0.47%

Dow In GOLD$ : $239.94
Change : $ 0.24 or 0.10%

Dow in GOLD oz : 11.607
Change : 0.011 or 0.10%

Dow in SILVER oz : 706.32
Change : 0.02 or 0.00%

Dow Industrial : 15,401.38
Change : -49.71 or -0.32%

US Dollar Index : 80.457
Change : 0.063 or 0.08%

Silver and GOLD PRICE charts have twisted my brain around to their side. Today silver lost 7.1 cents to 2180.5c while the gold price lost $5.60 to $1,326.90. So? So, the GOLD PRICE did not follow through on last week's weakness, but instead has grabbed hold here around $1,325 support. The mere fact that it held on today shows strength enough.

But the chart also shows an upside-down head and shoulder with a shoulder in May, head in June, and another shoulder in early August. Neckline today comes in about $1,280, so all last week's fainting spell merely took gold for a touchback to the neckline. No cause for panic there. Now if gold broke $1,300, then we might consider just a mild spell of panic, but not much.

The SILVER PRICE has made a pattern much like gold's, but way more complicated. Suffice it to say that a strong support line gradually declines from the April low at 2200c to last week's low at 2123c.

Other indicators -- MACD and RSI -- are either neutral or ambiguous.

Long and short here? As long as the gold price clings above $1,320 or so, it's August - September correction has ended. Bear in mind that any close under $1,320 pretty well nay-says that, and a close below $1,300 fully negates that interpretation.

In the German elections over the weekend perennial Eurozone devotee Angela Merkel won. At least, folks think she won. In fact, as results now stand, she has not enough votes for a majority government and lost her FDP coalition partner. Might have to rule in a minority government, taking fire from all sides.

My wife will skin me and nail my hide to the barn if I don't get out of here fast, so here it comes:

Stocks lost again today: Dow down 49.71 (0.32% to 15,401.38 and S&P500 down 8.07 (0.47%) to 1,701.84. Still looking like Big Bird stepped on the chart. Fifty day moving averages are probably the target.

Dow in gold and silver turned slightly down today. Nothing significant.

US dollar index looks sick. Rose 6.3 paltry basis points today, nothing. And why didn't the euro RISE today on euro-positive news of a Merkel victory? It sank 0.24%. Maybe the result of "buy the rumor, sell the news" but stinks of death to me.

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.