Monday, January 13, 2014

The Gold Price Closed Above it's 50 Day Moving Average at $1,250.90

Gold Price Close Today : 1250.90
Change : 4.20 or 0.34%

Silver Price Close Today : 20.361
Change : 0.160 or 0.79%

Gold Silver Ratio Today : 61.436
Change : -0.279 or -0.45%

Silver Gold Ratio Today : 0.01628
Change : 0.000074 or 0.45%

Platinum Price Close Today : 1441.90
Change : 5.50 or 0.38%

Palladium Price Close Today : 739.10
Change : -1.80 or -0.24%

S&P 500 : 1,819.20
Change : -23.17 or -1.26%

Dow In GOLD$ : $268.67
Change : $ -3.87 or -1.42%

Dow in GOLD oz : 12.997
Change : -0.187 or -1.42%

Dow in SILVER oz : 798.48
Change : -15.19 or -1.87%

Dow Industrial : 16,257.94
Change : -179.11 or -1.09%

US Dollar Index : 80.750
Change : -0.320 or -0.39%

The GOLD PRICE gained $4.20 to $1,250.90. Today's close not only places the gold price above the $1,250 resistance, but also and more importantly throws gold's leg over the 50 DMA (1,247.54). Silver remained above 2000c and gained another 16 cents to close Comex at 2036.1c

Something else I've been holding out on y'all, waiting to see it unfold. Gold has formed an upside down head and shoulders, but must stay above the shoulder line about $1,210.

Today's close remains equivocal. The real goal is that last high at $1,267.50, but surmounting the 50 DMA is a mighty boost.

The SILVER PRICE also closed above its 50 DMA (2017c) and has set its sights on resistance at 2100c. But first, there remain the December twin peaks at 2048c and 2044c. Silver might take those out tomorrow.

All other indicators point skyward. Best and biggest news cometh from the gold stock indices. GDX and HUI broke out above resistance. XAU closed plumb on resistance. Today all closed above their 50 DMAs.

Then there are the Dow in Gold and Dow in Silver. Oh, tumble, stumble, bumble! Dow in Gold dropped 1.3% to 12.99 oz (G$268.53 gold $s), inches away from the 50 DMA which is running along the bottom trading channel line. Break through 12.88 would be headline big news.

Dow in silver plunged 2.18% to 797.54, virtually on top of its 797.25 50 DMA. Bottom channel line is only inches below. For both the DiG and DiS, all indicators point DOWN, the way we want.

Silver and GOLD PRICES need only add one last confirmation by climbing past those December lows. This is the best outlook for silver and gold I've seen in a year.

I reckon every dog has his day, or every day has its dogs, or all dogs have fleas, or something. Anyway, it began happening today.

Correct me if I'm wrong, but I believe I've been warning y'all that the 31 December stock high marked a downtrend's beginning. Today starkly demonstrated that.

Dow unloaded 179.11 or 1.09% to 16,257.94. S&P500 chiseled off 23.17 (1.26%) to 1,819.20. It gets worse. Both closed below their 20 day moving averages (16,312 and 1,824), and both fractured their uptrend lines. Next target, next possible support, comes at the 50 DMA, 16,048.87 and 1,801. Well, the last highs at 16,174.51 and 1,813.55 might offer some support, but not much. More pain: MACD flashed a sell signal three days past, and the Rate of Change has turned negative. All that points like a flashing neon sign to lower prices.

Dollar index tumbled today, too, down 15 basis points or 0.19% to 80.60. Owch, that sneaked under the 50 dma (80.66) and 20 DMA. But here's a surprise, I have something good to say about the US dollar. Well, not really about the US dollar, I have nothing good to say about the World's Trashiest White Trash currency, but technically it broke out, rose, then has fallen back to the same downtrend line it broke on the way up. 20 and 50 DMAs happen to coincide about the same place. Other indicators aren't raging positive, but not really negative, either. Short of this is that I expect the dollar to continue the rally begun mid-December.

After hitting and breaking its uptrend line and 50 DMA five days ago, the Euro has rallied back to its 20 DMA, beginning to fill the gap left behind when it fell so badly as the year began. Might fill a bit more of that gap, but gravity's pull is taking over. Closed +0.02% at $1.3673.

Yen closed Friday above its 20 DMA and gapped up today, signaling some sort of rally. Whether it can beat the roadblock at the 50 DMA (97.93) remains to be seen. Yen is truly schizophrenic. Closed up 1.08% at 97.04 cents per Y100.

On 13 January 1607 the Bank of Genoa failed after the Spanish government announced national bankruptcy. Odd, doesn't Spain have some solvency problems today, too? As the French say, the more this changes, the more it stays the same thing.

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.