Gold Price Close Today : 1322.70
Change : 40.70 or 3.17%
Silver Price Close Today : 21.903
Change : 0.583 or 2.73%
Gold Silver Ratio Today : 60.389
Change : 0.258 or 0.43%
Silver Gold Ratio Today : 0.01656
Change : -0.000071 or -0.43%
Platinum Price Close Today : 1431.90
Change : 36.70 or 2.63%
Palladium Price Close Today : 736.80
Change : 24.25 or 3.40%
S&P 500 : 1,733.15
Change : 11.61 or 0.67%
Dow In GOLD$ : $240.24
Change : $ (7.66) or -3.09%
Dow in GOLD oz : 11.621
Change : -0.371 or -3.09%
Dow in SILVER oz : 701.81
Change : -19.29 or -2.68%
Dow Industrial : 15,371.65
Change : -2.18 or -0.01%
US Dollar Index : 79.613
Change : -0.855 or -1.06%
Oh, I want to crow really hard, but I'm choking it back. In the aftermath of the debt-ceiling deal, the GOLD PRICE jumped $40.70 (3.2%) to $1,322.70. That leaves the impression that the $1,251 intraday low on Tuesday was THE low for this move and the start of a new rally. That needs to be confirmed by gold closing over $1,330.80, the October high, followed by more higher prices.
The GOLD PRICE did more. Today it closed above its 20 DMA at 1,309.33. 50 DMA hovers above at $1,342.76. A close above $1,375 will send the bears scurrying for their dens and the security of a government lunch.
For the time being, absent a close below $1,272, today's movement confirms that the upside down head and shoulders we've been watching really is at work. The gold price will hit the overhead neckline about $1,410. A breakout through that point turns all forces in gold's favor.
Here's a little more icing: on the weekly chart, gold closed today above its 18 week moving average (1,318.32). Barely, but above. That upside-down HandS targets $1,675.
Blast! I nearly forgot. Gold also broke out of its falling wedge formation. That bullish formation, remember, usually resolves with an upside breakout.
The SILVER PRICE proved that EoD chart key reversal on Tuesday by jumping 2.7% today or 58.3 cents to 2190.3 -- comfortably above the 20 DMA at 21.70, and within clipping distance of the 50 DMA at 22.42.
Silver also escaped its falling wedge. The neckline of silver's upside down HandS stands about 2490c, and it could make that jump lightning fast.
Unless we see closes below $1,272 and 2090c, silver and GOLD PRICES have again begun rallying. In the next few days they need to advance sharply to confirm that.
The debt-ceiling farce forespoke the future loud and clear: spending by inflation will continue and grow. Reform is impossible and default inevitable, whether outright or by inflation. I asked a friend today why people can't understand that. He answered,
"Because the consequences are too devastating." Too devastating for most people even to ponder. Let him who has ears to hear, hear.
Y'all ever been around a married couple who were always contradicting each other? She no more than opens her mouth to say something than he corrects her. He starts to say something and she nay-says it. Doesn't take much of that to make you start looking for the exits, because this is gonna end in a scrap and maybe even a cutting.
So it is when markets that ought to agree -- "confirm" -- instead gainsay. Behold, that happened loudly in stocks today when the S&P500 closed at a new all-time-since-the-cosmos- was-formed high at $1,733.15 (up 11.61 or 0.67%) but the Dow closed d-o-w-n 2.18 (0.01%) at 15,371.65, below its 18 September 2013 all-time high by 305.29. This is not the stuff from which beautiful marriages --or rallies -- are built.
But shucks, what do I know? I'm just a natural born fool from Tennessee.
Today's big jumps in silver and gold brought down the Dow in Gold and Dow in Silver once again. Both stand a gnat's eyebrow from falling through their 20 DMAs. Dow in gold today closed down 3.09% at 11.621 oz (20 DMA is 11.60 oz). Dow in silver lost 2.68% or 19.29 oz and closed at 701.81 oz. 20 DMA standeth at 699.85 oz. Relative Strength Index and MACD have also turned down. Unless the DiG and DiS suddenly reverse and shoot sunward, this lower peak of the last 10 days confirms the reversal downward in June.
S&P500 today hit and slightly punctured its overhead trendline. It gained 0.67% or 11.61 for a 1,733.15 close. Dow closed down 2.18 at 15,371.65, nowhere near its last high. It appears the debt-ceiling driven rally yesterday was a classic case of "sell the news."
US dollar index slammed down 1.1% or 85.5 basis points to 79.613. To give you an idea what that means, the last low was 79.72. If the dollar falls past that mark, it could flutter through the air all the way to 73.
Euro finally worked up enough courage to close unequivocally higher. It gapped up and ended at $1.3676, 1.07% higher. Minimum target is probably at least $1.3710, the last high. Yen gapped up, too, but not as enthusiastically. Oh, it was enough to jump over the 20 and 50 DMA's, but just to the middle of the last nine weeks trading range. Ended at 102.15, up 0.88%.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
© 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 or 18 ounces of silver. or 18 ounces of silver. US $ and 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.