Tuesday, January 28, 2014

The Gold Price Closed Down $12.60 at $1,250.80

Gold Price Close Today : 1250.80
Change : -12.60 or -1.00%

Silver Price Close Today : 19.483
Change : -0.288 or -1.46%

Gold Silver Ratio Today : 64.200
Change : 0.298 or 0.47%

Silver Gold Ratio Today : 0.01558
Change : -0.000073 or -0.46%

Platinum Price Close Today : 1407.70
Change : -11.70 or -0.82%

Palladium Price Close Today : 715.60
Change : -6.05 or -0.84%

S&P 500 : 1,792.50
Change : 10.94 or 0.61%

Dow In GOLD$ : $263.25
Change : $ 4.11 or 1.59%

Dow in GOLD oz : 12.735
Change : 0.199 or 1.59%

Dow in SILVER oz : 817.56
Change : 16.50 or 2.06%

Dow Industrial : 15,928.56
Change : 90.68 or 0.57%

US Dollar Index : 80.582
Change : 0.020 or 0.02%

Yesterday the GOLD PRICE closed Comex only 90 cents lower but in the aftermarket lost another $10. That showed up today at the Comex close, lower by $12.60 to $1,250.80, about 1% lower than yesterday. Yet as I said, most of that loss had already showed yesterday. Unlike recent months, gold did not follow through yesterday's weakness.

The GOLD PRICE hesitation here is easily explained: it is bumping against the downtrend line from April 2013. Thus Friday it couldn't get through the $1,267.50 December high, though it came so close. Nothing is out of order here, but the gold price might drop back to its 50 DMA at $1,238.04. Further drop would call its intentions into question. However, the Fed's mumblings tomorrow might derail gold for a while. Just no telling how the market will take their words.

The SILVER PRICE casts the only gloom over this brightening precious metals picture. It lost 28.8 cents (1.5%) today to end at 1948.3c. Remember that on Friday silver's weakness gainsaid gold's strength. Worse, platinum and palladium are falling, too. Copper has fallen back to its 200 DMA.

So the situation is unclear, and will remain so until the FOMC shoots tomorrow. My gut and the trends in place say, regardless what the Fed intones, stocks will continue lower and gold will keep climbing, even pulling silver up. Dow would have to beat 1,500 to change that outlook, and the gold price would have to drop below $1,210

Now if I wanted to put millions of people back to work in America, the very first thing I would do is-- raise wages 39%! Yes, socialist moronism now reigns supreme in Washington, where His Federal Highness, Bernard O'Bama, is decreeing today that all those federal government contractors now paying their minimum wage folks $7.25/hr must raise them to $10.10. This will prompt those employers to look at their payrolls, scratch their heads, and fire the lot of them, as they cannot afford to raise them 39%.

Thus Bernard, our first communist president, will manage to throw countless thousands out of work. Between him and the Fed, it's a job to figure out who is stupidest.

Speaking of the Fed, its long, twisted shadow hangs over markets this week because the FOMC has another meeting tomorrow. Chances are Yellow Janet will be terrified by the stock market waterfall cascading over the headlines and put The Mythical Taper in the dame class with the Easter Bunny, Sasquatch, and Santa Claus, announcing that money creation (and its floor under Wall Street) will continue on, world without end.

I have to leave early today, and am writing this just before the stock market closes, but I'll include closing prices below.

Stocks are in big trouble, although it's not clear yet whether this is merely a correction, or we have seen the ultimate top. For now, I'll opt for a severe correction into February, with the ultimate top later this year, subject to changing my mind at the drop of an index.

Stocks have been flashing all sorts of portents through January, mostly with the Dow refusing to join the party. Right now the Dow stands up 94.44 at 15,932.32, up 0.6% on the day, but in truth doing no more than a dead cat does when thrown from a three story building. The bounce signifyeth not life. S&P has managed to climb 10.93 (0.61%) to 1,792.49, but other indices are down slightly.

Stocks are in such trouble that it's a fair bet that whatever comes out of the FOMC meeting tomorrow, it will contain fat meat for stocks. Ergo, no taper.

Dow in Gold has fallen clean out of the trading channel and made half the journey from the 50 DMA (13.06 oz) to the 200 DMA (11.74 oz). DiG stands now at 12.73 oz (G$263.08 gold dollars). Dow in Silver hasn't been so rambunctious but at 817.75 oz has quite broken below its 50 DMA (812.76 oz).

US Dollar index has gone flat last two days, and is unlikely to move today, waiting for the Fed's Delphic Oracle to predict the future.

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.