Gold Price Close Today : 1245.20
Change : -5.70 or -0.46%
Silver Price Close Today : 20.251
Change : -0.110 or -0.54%
Gold Silver Ratio Today : 61.488
Change : 0.052 or 0.09%
Silver Gold Ratio Today : 0.01626
Change : -0.000014 or -0.08%
Platinum Price Close Today : 1431.90
Change : -10.00 or -0.69%
Palladium Price Close Today : 738.00
Change : -1.10 or -0.15%
S&P 500 : 1,838.88
Change : 19.68 or 1.08%
Dow In GOLD$ : $238.62
Change : $ 3.00 or 1.27%
Dow in GOLD oz : 11.543
Change : 0.145 or 1.27%
Dow in SILVER oz : 709.79
Change : 9.53 or 1.36%
Dow Industrial : 14,373.86
Change : 115.92 or 0.81%
US Dollar Index : 80.720
Change : 0.120 or 0.15%
Silver and GOLD PRICES shaved a little off today, silver backing 11 cents to 2025.1c and the gold price dwindled $5.70 to $1,245.20.
The SILVER PRICE is acting more like a market tapping at a ceiling than one about to faint. Today silver made the first half of a key reversal with a new high for the move but a lower close. To verify that it must close lower tomorrow. However, today it fell back to the 50 DMA it broke through yesterday and bounced back. Remains above it. Next upward barrier is 2048c. Silver could fall all the way to 2000c without breaking this uptrend.
The GOLD PRICE is playing footsie with its 50 DMA, now at 1,246. There's a resistance/support band from about $1,245 to $1,267.50. Gold is merely slogging its way through that area. Wait, though! Gold did close near its short term uptrend line, so mustn't drop lower than $1,241.40 (today's low) tomorrow.
Silver and gold prices continue to look stronger than they have lo, these many months. I have bought some and will buy more as it rises, lots more on a close over $1,267.50.
Why did the libertarian cross the road? None of your business. Am I being detained? (That's the theory -- the performance is another thing.)
Markets rise and markets fall. Trick is to figure out whether either is lasting or a feint.
Stocks, for example, rose today amidst general jubilatin'. They might have pulled the trigger on that a mite early. Dow levitated 115.92 or 0.71% to 16,373.86 while the S&P500 waxed even fatter, boated by 19.68 or 1.08% to 1,838.88.
Only problem is, those rises changed not the chart. The Dow, it's true, rallied, but only to the downtrend line it busted yesterday on its way down. Nothing big, likely merely a kiss good-bye before diving deeper. SPX did the same. Jubilatin' is a mite previous.
Neither the Dow in Gold nor the Dow in Silver (despite both metals' dips) did more than jiggle upward, nervously bouncing off the 50 DMA. Such bounces are to be expected when any sort of support is hit, 50 DMA or channel line or support/resistance. Only the followthrough unfolds the meaning. DiG and DiS both point earthward.
Another example of parsing a fall: US dollar index rallied out through its downtrend channel line, fell back to its 50 and 20 DMAs, which coincided with the downtrend line, and today turned up again. Oh, only 12 basis points (0.15%) but the point is that the downtrend's support held. Dollar continues to lift its finger toward the sun, attempting to fly. It will likely succeed, but, like Icarus, come to a tragic end when its paper wings fall apart.
Euro balked at its 20 DMA. Edged up 0.7% to $1.3679. Trajectory is earthward. Yen flopped back today 1.1% to 95.99 cents per Y100, but only to fill the gap left behind yesterday. Has a double bottom at 94.83 and has broken through the downtrend lie and the 20 DMA. Headed higher, heaven only knoweth why.
More important is the 10 year treasury note yield, which in the last three days broke down through its 20 DMA and uptrend line. Now it has bounced off the 50 DMA which might contain the fall. Remember we are watching interest rates because they turned up in June and will eventually wreck the Fed's Zero Interest Rate Policy and the rest of its garden party.
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.