Friday, December 13, 2013

The Gold Price Bounced Back Closing Up for the Week at $1,235.70

Gold Price Close Today : 1,235.70
Gold Price Close 5-Dec-13 : 1,230.30
Change : 5.40 or 0.4%

Silver Price Close Today : 19.559
Silver Price Close 5-Dec-13 : 19.465
Change : 0.094 or 0.5%

Gold Silver Ratio Today : 63.178
Gold Silver Ratio 5-Dec-13 : 63.206
Change : -0.028 or 0.0%

Silver Gold Ratio : 0.01583
Silver Gold Ratio 5-Dec-13 : 0.01582
Change : 0.000 or 0.0%

Dow in Gold Dollars : $ 263.57
Dow in Gold Dollars 5-Dec-13 : $ 269.18
Change : -5.61 or -2.1%

Dow in Gold Ounces : 12.750
Dow in Gold Ounces 5-Dec-13 : 13.021
Change : -0.27 or -2.1%

Dow in Silver Ounces : 805.53
Dow in Silver Ounces 5-Dec-13 : 823.03
Change : -17.50 or -2.1%

Dow Industrial : 15,755.36
Dow Industrial 5-Dec-13 : 16,020.20
Change : -264.84 or -1.7%

S&P 500 : 1,775.82
S&P 500 5-Dec-13 : 1,805.09
Change : -29.27 or -1.6%

US Dollar Index : 80.210
US Dollar Index 5-Dec-13 : 80.270
Change : -0.06 or -0.1%

Platinum Price Close Today : 1,362.00
Platinum Price Close 5-Dec-13 : 1,355.40
Change : 6.60 or 0.5%

Palladium Price Close Today : 715.75
Palladium Price Close 5-Dec-13 : 735.45
Change : -19.70 or -2.7%

Today silver and GOLD PRICES bounced back, moderately. the gold price gained $9.70 to a Comex close at $1,235.70. Silver found 15.7 cent to raise it to 1955.9, not much given the high came at 1974c. On a weekly chart gold flashed an MACD buy signal two weeks ago, but it's a near thing.

On the daily chart the GOLD PRICE broke out over the downtrend line from the October high on Monday, and today's action merely took it back to that line for a Kiss Good-Bye. Yeah, that sounds loony, but there 'tis. Other indicators pointing up, too, but we need some confirmation. First I'd like to see a gold price above that 20 DMA (1,245) next week early then closing above $1,257.50 (last high) and $1,295 (where it broke down).

The SILVER PRICE monthly chart is a cliffhanger, with silver dead on the uptrend line. On a weekly chart it's just beneath the downtrend line.

Today like gold, silver merely moved back to that downtrend line it had burst though on 6 December. Everything but the Rate of Change points up.

Next week will be interesting. We'll either see a big metals slide below recent lows, or gains confirming that bottom on 6 December.

The worm turned this week, but not without speaking out of both sides of his mouth. Stocks dropped for the second week in a row. Dollar index flatlined.

Dow managed a face saving little rise today after losing 286.1 the three days before. Added 15.93 or 0.1% to 15,755.36. S&P500 lost still, down 0.18 to $1,775.32, after making a new high on Monday.

The Dow "threw over," that is, climbed above and outside its upper trading channel line, back on 13 November, a month ago. Yesterday it fell cut through that line like a bag of mothballs pushed out of a C130 cargo jet. It's way below its 20 DMA (15,960) and hovering not far above its 50 DMA (15,655). Nothing in other indicators suggests it plans to turn up any time soon. I suspect this one's going to hurt

S&P 500 offers much the same picture as the Dow -- below its 20 DMA (1795) and nearing its 50 DMA (1762), but it hasn't quite fallen back into that trading channel. The line is about where the 50 DMA is. (It climbed out of that trading channel on 18 October.) So far there's no reason to say "This is The Big One" but stocks are lining up a painful correction.

Y'all may not put as much stock in the Dow in Gold and Dow in Dollars as I do, but only because you haven't followed them as long as I have and witnessed their reliability.

Now a natural born fool from North Carolina wants to know about the Dow in Gold and Dow in Silver. I just divide the price of the Dow by the Gold or Silver price to get the indicator. It is very sensitive -- USUALLY -- to changes in the course of stocks against silver or gold. That's why I've been sweating bullets and spitting iron filings since these indicators crossed above their long term downtrend line. Waiting now for both to drop back under those lines. They sometimes turn before prices turn, or before you can be sure they've turned.

After rising barely through their 20 DMAs yesterday, they dropped back through them today. DiS closed lost 0.92% to close the day at 801.39 oz. DiG ended at 12.73 oz, lower by 0.98%. Both have established downtrends, the first sign that silver and gold are about to turn up against stocks. The move is just starting, so we need to see more confirmation, but all indicators point down.

US Dollar index rose 1.4 basis point today (0.04%) to 80.21. Best you can say for it is that it's no longer under support at 80, and it bumped against its 50 DMA (80.39) today. Otherwise it lacks confidence and decisiveness.

Euro, one of the dollar's three competitors for "Rottenest Fiat Currency on the Earthball," fell a tiny 0.7% to $1.3743. Might make another run for $1.3800.

Yen crashed 0.92% yesterday, and added back 0.15% today, ending at 96.62 cents per Y100. I wish those Japanese Nice Government Men would make up their minds whether they're going to push the yen off the cliff or not.

Y'all enjoy your weekend!

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.