Thursday, January 23, 2014

Encouraging Day for the Gold Price Closing Up 1.9 Percent at $1,262.60

Gold Price Close Today : 1262.60
Change : 23.60 or 1.90%

Silver Price Close Today : 19.981
Change : 0.172 or 0.87%

Gold Silver Ratio Today : 63.190
Change : 0.643 or 1.03%

Silver Gold Ratio Today : 0.01583
Change : -0.000163 or -1.02%

Platinum Price Close Today : 1461.70
Change : 0.80 or 0.05%

Palladium Price Close Today : 745.00
Change : -2.95 or -0.39%

S&P 500 : 1,844.86
Change : 1.06 or 0.06%

Dow In GOLD$ : $265.19
Change : $ -7.99 or -2.92%

Dow in GOLD oz : 12.829
Change : -0.386 or -2.92%

Dow in SILVER oz : 810.64
Change : -15.92 or -1.93%

Dow Industrial : 16,197.35
Change : -175.99 or -1.07%

US Dollar Index : 80.500
Change : -0.780 or -0.96%

The GOLD PRICE closed Comex $23.6 (1.9%) higher at $1,262.60. This is slightly higher than where it faded ($1,262) day before yesterday. Today's move gainsays and negates the key reversal of the last two days, and ALMOST takes gold above its December $1,267.50 high. It also carries it to the top of its Bollinger Band, so it needs to hit the gas here or fall back. Today's show suggests it will hit the gas and accelerate its rally.

The SILVER PRICE had a weird day. It hit 2031 cents at the high, but settled Comex at only 1998.1, up 0.8% or 17.2 cents. Makes little sense with gold so strong. However, it places silver back above its 20 (1993c) and 50 (1994c) DMAs, turns momentum up, and leaves me generally felling warm and fuzzy.

Nevertheless, silver must cross 2050c or it's all just warm fuzzies amounting to nothing but . . . warm fuzzies. Them you can't take to the bank.

To prove a rally, ideally the GOLD PRICE will close well above $1,267 tomorrow and silver above 2050c. Not so ideally, to maintain its rally gold needs to close above $1,262. Any close above $1,251.70 gives it five higher weeks in a row.

There's more, but I don't want to overload y'all. In the face of a stock market puking it its wastebasket the gold stock indices rose smartly. XAU up 2.48%, GDX up 2.73%, HUI up 2.7%. Breakout for the HUI above its downtrend line from August.

Very encouraging day for silver and gold prices. Not so hot for stocks and the loathsome dollar.

Lots of surprises today. Whether bad or good depends on what you own.

Stocks finally made good on the Dow's nagging refusal to confirm the other indices. Dow fell like your car keys sinking down a well when you bent over to look at your reflection and they slipped out of your shirt pocket. Sliced into its 50 DMA (16,153) but ended down only 175.99 (1.07%) at 16,197.35. All other indices tumbled, too. S&P500 lost 16.4 (0.89%) to 1,828.46. That took the S&P500 way below its 20 DMA at 1,838, and turns momentum gravityward for stocks.

I'm not one to say "I told y'all so" unless severely provoked, and today one does the job. I believe I told y'all back on the 10th that the Dow's MACD had flashed a sell signal. With those lower tops that warned "Trouble coming!"

Today's stock dive sent the Dow in Metals down, down. and gave the breakdown I've been looking for. Dow in Gold ended at 12.81 oz (G$264.81 gold dollars), down 3.24%, below the 13.05 oz 50 DMA and punching through the lower channel line.

Silver was lazier than gold today, so the Dow in Silver, although it lost 2.14% to 809.67 oz, only barely broke its 50 DMA (810.73) and didn't quite fall out of the channel.

Big surprise (for me) today was the rotten performance of the loathsome US dollar index. Lost 78 basis points (0.96%) to 80.51, undoing two week's work and closing below its 20 and 50 DMA. Tripped by good European economic statistics. Triggered an MACD sell signal. Euro gapped up 1.1% to $1.3694, closing back within the channel it had fallen out of and above its 50 and 20 DMAs. Go figure. Yen jumped too, up to the 50 DMA by a long step. Uptrend now established.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2014, 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.