Gold Price Close Today : 1245.50
Change : 9.80 or 0.79%
Silver Price Close Today : 20.049
Change : 0.490 or 2.51%
Gold Silver Ratio Today : 62.123
Change : -1.055 or -1.67%
Silver Gold Ratio Today : 0.01610
Change : 0.000269 or 1.70%
Platinum Price Close Today : 1359.20
Change : -2.80 or -0.21%
Palladium Price Close Today : 715.90
Change : 0.15 or 0.02%
S&P 500 : 1,786.54
Change : 11.22 or 0.63%
Dow In GOLD$ : $263.64
Change : $ 0.07 or 0.03%
Dow in GOLD oz : 12.754
Change : 0.003 or 0.03%
Dow in SILVER oz : 792.29
Change : -13.24 or -1.64%
Dow Industrial : 15,884.57
Change : 129.21 or 0.82%
US Dollar Index : 80.220
Change : 0.024 or 0.03%
After a $9.70 jump Friday, the GOLD PRICE jumped another $9.80 (0.8%) today and closed Comex at 1,245.50. Maybe that is just short covering ahead of the FOMC meeting, but the GOLD/SILVER RATIO supports an interpretation of strength. It dropped nearly a whole point today, from 63.178 on Friday to 62.123 today, almost dead on the 30 year average price.
The SILVER PRICE rose 49 cents to close over 2000c at 2004.9. This sets both silver and gold prices above their 20 DMAs (1982c and $1,242.56). However, even with other positive indicators, that doesn't mean much until they climb above the last highs at $1,267.50 and 2048c. Really, that silver needs to rise above 2100c.
Problem is, that hog-brained FOMC meeting keeps us from drawing comfortable and reliable conclusions from this price action. Those clowns could say this or that and the public interprets it in some outlandish manner idiosyncratic to people who believe government officials, watch TV, and confuse a bull market with investing genius, and our boat is sunk.
Just as the Soviet Union used to jam radio waves from European stations, so the FOMC meeting this Tuesday-Wednesday overhangs and jams brain waves, heterodyning sane discourse this week. On Wednesday they will announce whether they will taper or not -- or is that "tapir"? I get confused. Do they mean the pig-like animal? Say, are they saying the Fed is going to the pigs?
In any event, I don't see how the Fed can stop buying bonds. That's how they manipulate interest rates, and if they stop manipulating and let nature take its course, their US treasury bond bubble will burst and the stock market will tank, and they might precipitate a global panic. Faced with those choices, the Fed governors, who are NOT chosen for courage, will hardly taper. I don't see how they can ever stop, but then, I ain't no central banker. I'm just a durned natural born fool from Tennessee.
Apparently those brain-wave-jammed investors expect the Fed NOT to taper, so they covered short positions in gold. Why? Not tapering means more inflation, and inflation feeds gold. Apparently, it feeds stocks, too, since they rose as well.
Dow jumped 0.82% or 129.21 points to $15,884.57. S&P500 came back from leaning over the brink on a rotten rope Friday to gain 11.22 (0.63%) and close at 1,786.54. 'Twas a respectable but not dispositive move. That is, they jumped up smartly, but crossed no moving averages, moved no MACD, startled no RSI. they merely ricocheted off bottom Bollinger bands and support at the last high. Tomorrow will tell if they can punch through the midline of those Bollinger Bands, which is also the 20 DMA.
Dow in Gold rose a little today, but not to amount to anything. DiG gained 0.65% to 12.81 oz (G$264.81 gold dollars). Rate of change is still negative, MACD still counsels "Sell." DiS in fact LOST 0.72% to 795.62 oz by day's end. Trend in both remains sturdily down, down.
US Dollar Index got as close to flat today as it could without hugging asphalt. Closed a single basis point above Friday, 80.22. Has now knocked twice on the 50 DMA (80.39) but can't get through by the hair of its chinny chin chin. Maybe if Bernanke huffs and puffs after the FOMC meeting the dollar can rise. Analysts I respect still are waiting for the buck to rise, but I can't see it. It fell this year out of the trading channel from Spring 2011. Beneath its 200, 50, and 20 day moving average. If it can't hold on at 80, or 79 at the worst, its turkey is basted.
On 16 December 1967 in Memphis I married Susan Askew. Best thing I ever did, God bless her!
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.