Thursday, December 19, 2013

The Gold Price Plunged $41.10 or 3.5% Today

Gold Price Close Today : 1195.00
Change : -41.10 or -3.32%

Silver Price Close Today : 19.143
Change : -0.871 or -4.35%

Gold Silver Ratio Today : 62.425
Change : 0.663 or 1.07%

Silver Gold Ratio Today : 0.01602
Change : -0.000172 or -1.06%

Platinum Price Close Today : 1318.00
Change : -24.20 or -1.80%

Palladium Price Close Today : 695.30
Change : -3.10 or -0.44%

S&P 500 : 1,809.60
Change : -1.05 or -0.06%

Dow In GOLD$ : $279.88
Change : $ 9.49 or 3.51%

Dow in GOLD oz : 13.539
Change : 0.459 or 3.51%

Dow in SILVER oz : 845.17
Change : 37.34 or 4.62%

Dow Industrial : 16,179.08
Change : 11.11 or 0.07%

US Dollar Index : 80.790
Change : 0.540 or 0.67%

The GOLD PRICE plunged $41.10 (3.5%) today and silver tumbled 87.1 cents (4.4%) to 1914.3c.

The metals' delayed reaction to yesterday's FOMC announcement began about 4:00 eastern time, gapping down to just above $1,200 gold price and 1915c silver price. The SILVER PRICE traded flat most of the rest of the day. Silver's low came at 1910c and gold's at $1,186, nearly the June intraday low at $1,179.40.

If silver and gold prices intend to make a double bottom with the June lows, this is the place. Otherwise the GOLD PRICE will keep sliding into the low $1,100s before it finds footing and ends this wave. If silver doesn't catch here, it could land anywhere from 1750c to 1500c.

Remain calm, be patient. A bottom could come any time between now and end of the year.

Please forgive me, I got yesterday's closing price of the US dollar index wrong somehow, at 80.55 rather than 80.25 Don't know what went wrong, but my conclusion remains the same. Why should the US dollar index not drop on news that the Fed intends to keep on depreciating the dollar? Still maketh no sense.

It continued making no sense today when the dollar index gained 0.68% or 54 basis points to close right on its downtrend line at 80.79. Whatever I might think of it, the dollar index is trying to push up through that downtrend line for a rally. Moreover, the MACD flashed a buy signal today. It's nasty, but it's rallying. If it clears that downtrend line and closes above 81 then it will run toward 83. That might take some of the air out of gold's sails.

The euro lost 0.62% yesterday and another 0.16% today to close at $1.3661. It has left behind a double top with the October high a little above $1.3800. Poised above its 20 DMA ($1.3652) waiting for somebody to open the trap door and let it fall through.

Yesterday the yen fell through its May low (96.41) and today lost a small 0.03% to end at 95.94 cents per Y100. Since that May bottom was the low of a fall that began from a 5 year top at 132.18 cents/Y100 in October 2011, we have to claw back to 2008 to find the yen this low. It's headed for 90 or lower unless it gives some evidence of reversing.

Stocks behaved strangely today. By 11.11 points the Dow made a higher high than yesterday, a new all-time high at 16,179.08. Now it's not just because I mistrust stocks that I bring this up, but the S&P500 lost 1.05 (0.06%) to end at 1,809.60, and all the other indices dropped, too.

Reaching for new highs by inches makes me nervous that a market is running out of steam. What if this is a double top, one of those notoriously strong B waves that fool everyone?

Today's sharp drop in gold threw the Dow in Gold up to a new high at 13.63 oz (G$281.76 gold dollars). It has now moved into overbought territory on the RSI, but he MACD just turned up. Clearly headed up.

Once again, the Dow in Silver lags the Dow in Gold. It made a new high for the move today at 841.56 oz (up 2.62%) barely above the last high. But it, too, should move higher.

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.