Wednesday, January 22, 2014

The Gold Price Lost $3.30 Closing Today at $1,239

Gold Price Close Today : 1,239.00
Change : -3.30 or -0.27%

Silver Price Close Today : 19.81
Change : -0.03 or -0.15%

Gold Silver Ratio Today : 62.547
Change : -0.075 or -0.12%

Silver & GOLD PRICES closed lower, confirming a key reversal & calling for lower prices. Silver dropped 2.9 cents to 1980.9c and gold lost $3.30 to $1,239.00.

The GOLD PRICE hit the neckline of its little upside-down head & shoulders yesterday but closed lower, then closed lower today. Shoulder line of that inverted H&S is about $1,212, so gold must contain any retreat there. Lower close tomorrow clinches a re-visit to $1,220 at least.

The SILVER PRICE closed lower today, too, also confirming a key reversal. What might contain it? 1940 cents, where there's strong support? 1930 cents, ditto? If those yield, then look for another trip below 1900.

For the second day running, all stock indices but the Dow rose while the Dow fell -- a striking contradiction & non-confirmation.

Dow gave back 41.1 (0.25%) to 16,373.34, markedly below its 20 DMA (16,434). This stands against a backdrop of a downtrend (series of lower highs and lower lows), matched by other indicators pointing down. Ignore that at your own peril.

Meanwhile the S&P500 doesn't look much healthier, despite its 1.06 (0.06%) rise today to 1,844.86. It still floats above its 20 DMA (1,838), without making clear whether this is a consolidation or continuation pattern.

Stocks are in that position were your breath checks when you look at the chart. Both indices need to close above recent highs to turn solidly up.

Neither Dow/Metal indicator moved much today. Dow in gold ended at 13.24 oz (G$273.69). Dow in silver added 0.1% to 827.35 oz, and is dancing on the 20 DMA.

I take away the impression that stocks are a market under pressure, strong from both sides. Whichever side gives up first will push the market in his direction.

Loathsome, despicable fiat currencies did nothing remarkable today. US dollar index inched up 6 basis points to 81.29. Still going nowhere in an uptrend. Euro lost 0.13% to $1,3545, pausing in mid-air on its way to $1.3300. Japanese yen nudged down 0.28% to 95.66 cents/Y100, rapidly going sideways & nowhere.

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.