Gold Price Close 27-Dec-13 : 1,216.10
Change : 22.30 or 1.8%
Silver Price Close Today : 20.182
Silver Price Close 27-Dec-13 : 20.013
Change : 16.90 or 0.8%
Gold Silver Ratio Today : 61.362
Gold Silver Ratio 27-Dec-13 : 60.766
Change : 0.596 or 1.0%
Silver Gold Ratio : 0.01630
Silver Gold Ratio 27-Dec-13 : 0.01646
Change : 0.000 or -1.0%
Dow in Gold Dollars : $ 274.92
Dow in Gold Dollars 27-Dec-13 : $ 280.11
Change : -5.18 or -1.9%
Dow in Gold Ounces : 13.299
Dow in Gold Ounces 27-Dec-13 : 13.550
Change : -0.25 or -1.9%
Dow in Silver Ounces : 816.07
Dow in Silver Ounces 27-Dec-13 : 823.39
Change : -7.31 or -0.9%
Dow Industrial : 16,469.99
Dow Industrial 27-Dec-13 : 16,478.41
Change : -8.42 or -0.1%
S&P 500 : 1,831.37
S&P 500 27-Dec-13 : 1,841.40
Change : -10.03 or -0.5%
US Dollar Index : 81.040
US Dollar Index 27-Dec-13 : 80.500
Change : 0.54 or 0.7%
Platinum Price Close Today : 1,411.50
Platinum Price Close 27-Dec-13 : 1,376.00
Change : 35.50 or 2.6%
Palladium Price Close Today : 730.30
Palladium Price Close 27-Dec-13 : 711.05
Change : 19.25 or 2.7%
The GOLD PRICE added $13.40 to end at $1,238.40. Silver today gained 8.4 cents to 2018.2.
Platinum and palladium are pitching in their fair share, too. Both have shot straight up off mid-December lows to close above 20 and 50 day moving averages. Palladium even stands above its 200 DMA! Generally what's good for the white metals is good for the silver and gold price too.
GOLD/SILVER RATIO began trending down 2 December and has fallen ever since. Yesterday it fell sharply through its 50 DMA AND 200 DMA. Bear in mind that because silver and gold prices move together and silver usually moves faster than gold, the ratio DROPS in rallies. Thus a falling ratio promises very good things for silver gold prices. Stochastics, Rate of Change, MACD, RSI all point to a lower ratio.
This is solid trading, with steady gains every day jumping from resistance to higher resistance. Gold tested the floor at $1,221.30 today, just below yesterday's close, and jumped to the ceiling at $1,239.60, knocking on that $1,240 resistance. Hang on -- this is pretty but won't prove anything until gold climbs above the December $1,267.50 high and 50 DMA ($1,260.56).
Last two days have painted a breakout from a bullish falling wedge with a target of $1,295, where gold shamed itself with failure in November and where another resistance barrier lies. While the possibility of a further slide below June's $1,179.40 low, December lows at $1,186 and $1,181.40 argue for a double bottom with June and a truncation of this downleg. That bounce off the June lows speaks loudest of better things to come.
All indicators have fingers pointing toward the clouds, but first let's see that close through $1,240.
Pause to reflect that the last two days' strength for the silver and gold price came in the teeth of a strongly rising US dollar (y'all know, the green one with pictures of dead Americans that used to look like money but now looks like Monopoly money).
The SILVER PRICE closed barely above the downtrend on its weekly chart. First time since October. Silver let its toes drop to 1999c today, but reached up for 2033c. Silver is trying to close above its December intraday high at 2029c. Yesterday the high was 2044c, but silver needs to close above there. Resistance always lurks at 2100c, then looms the October high at 2309c.
Friends, indicators and cross markets have not lined up like this for silver and gold for a long, weary while. Too early to call this the turnaround, but only a few confirmations will take us there.
I bought quite a bit a few days ago, but then, I'm a plunger and a natural born fool.
Ponder stocks. After a new high on 30 December they've been rolling downhill and gaining momentum. Most indices closed down today slightly, although after a 135 point drop yesterday the Dow dead-cat-bounced up 28.64 (0.17%) to close at 14,469.99. Hard to argue with the scoreboard: that's lower for the week. Likewise the S&P500 lost ground this week, and lost 0.61% today (after losing 16.38 yesterday) to end at 1,831.37.
'Twas a portentous day for the Dow in Silver. Closing at 816.56 oz, it sneaked beneath the 818.86 oz 20 day moving average, dropping 0.67% for the day.
Dow in Gold hovereth yet above its 20 DMA. Closed today 13.31 oz against a 13.23 oz 20 DMA. Both DiG and DiS are flashing reversals by technical indicators. Four days isn't enough to use as a rope for a swing over hell, but it appears that stocks have turned down against metals. Taken together with other indicators, silver and gold are beginning to shine again.
Yesterday the US DOLLAR INDEX only pecked through the wall of its prison below the downtrend line, but today it made good its escape. MACD flashed a buy signal. Dollar might rally to 83 or 83.5.
Today's rally hit euro holders in the incisors with a pipe wrench. Euro gapped down yesterday below its uptrend line, and today closed wretchedly at the bottom of today's range, and below the 20 and 50 DMAs. Trapdoor is open for a fall to the 200 DMA, now $1.3300. Somebody stick a mirror under the yen's nose to see if its still breathing! Fell 0.08% to 95.36 today. Got to its downtrend line and fainted like a 14 year old boy asking his girlfriend to dance. No sunshine there.
In spite of stocks declines, gold and silver mining stock indices are climbing. XAU climbed over its downtrend line and hit its 50 DMA today after a double bottom in December. GDX pierced its downtrend last week, touched back to kiss goodbye, gapped up yesterday, and backed off a little today. HUI still needs to close above 207, but ended today at 203.49, and has followed the same pattern as the others. These all need but one little jump to confirm a turnaround skyward.
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.