Tuesday, January 21, 2014

The Gold Price Remained Above it's 50 Day Moving Average Closing at $1,242.30

Gold Price Close Today : 1242.30
Change : -9.40 or -0.75%

Silver Price Close Today : 19.838
Change : -0.429 or -2.12%

Gold Silver Ratio Today : 62.622
Change : 0.862 or 1.40%

Silver Gold Ratio Today : 0.01597
Change : -0.000223 or -1.38%

Platinum Price Close Today : 1452.00
Change : -0.60 or -0.04%

Palladium Price Close Today : 747.15
Change : -0.50 or -0.07%

S&P 500 : 1,843.80
Change : 5.10 or 0.28%

Dow In GOLD$ : $273.14
Change : $ 1.32 or 0.49%

Dow in GOLD oz : 13.213
Change : 0.064 or 0.49%

Dow in SILVER oz : 827.42
Change : 15.34 or 1.89%

Dow Industrial : 16,414.44
Change : -44.12 or -0.27%

US Dollar Index : 81.240
Change : -0.140 or -0.17%

Same old tricks attacked the gold market today after Friday's exuberant close. A little after New York opened somebody slammed it with sales, driving the GOLD PRICE from $1,246 to $1,237 in five minutes. It found a foothold and climbed above $1,240 by noon-thirty, but flattened out the rest of the day. High came at $1,262 in overnight trading, low at $1,235.40. Comex closed down $9.40 (0.75%) at $1,242.30.

What's encouraging about that? The GOLD PRICE remained above the 50 DMA ($1240.38). What's discouraging? It made a new high for the move, but closed lower for the day, first half of a key reversal. Must close higher tomorrow or probe lower prices again.

Oh, silver! Plunged 42.9 cents (2.1%) today to 1983.8c. Range was 2043c to 1966c, and silver has fallen right back into the same old trading range without escaping through 2050c. Worse, it fell through the 50 DMA (2000c) and the 20 DMA (1988c) and through the uptrend line.

Be patient. The SILVER PRICE must hold above 1950c here. Gold must hold $1,210. Nobody is going anywhere until gold rises above $1,267.70, the December low.

Markets sprang back into action today, but they blew an uncertain trumpet. Bewilderment reigns.

Stock indices all rose today -- except the senior Dow Jones Industrial average, which fell 0.27% or 44.12 points to 16,414.44. S&P500 rose by about the same amount, up 0.28% (5.1 points) to 1,843.80.

Dow's fall looks nastier because it rose to a new high for the move (not a new all-time high) then fell off to close lower, and below the 20 DMA (16,426.41). That's the first half of a key reversal, and if followed by a lower close tomorrow semaphores immediately lower prices.

S&P500's trading day looks much the same, cutting into but not closing below its 20 DMA, but it closed higher than Friday. None of this looks happy to me. Certainly stocks have not yet peaked, but they are blowing hot and cold out of both sides of the mouth. As with bankers and girlfriends, this is not a sign of future felicity.

Silver and gold gainsaid each other today, which left the Dow in Gold and Dow in Silver at odds, too. Dow in Gold rose a little 0.78% to 13.23 oz (G$273.49 gold dollars). It treadeth still below the 20 DMA and along the cliff edge of the trading channel and 50 DMA (13.01oz/G$268.94). A single misstep sends it plunging into the abyss.

Dow in silver rose 2% to 826.51 oz, touching the 20 DMA at 826.47. Remains near the bottom channel line and close to the 50 DMA (807.05 oz). Break through those 50 DMAs would rev up downward momentum, sort of like tying concrete blocks to somebody's feet before pushing him out of an airplane.

The festering US dollar index keeps trending up, sort of, but three steps forward and two back. Today it reached for the 200 DMA (81.57), made a high at 81.53, then fell back and closed 14 basis points (0.17%) lower than Friday. Headed up, but torturing its friends along the way. To your everlasting surprise, I beg to report that I am not among those friends.

Among the other loathsome, immoral, and corrupt fiat currencies used to decapitalize their captive economies, the Euro rose 0.16% to $1.3562, but this is like shaving a pig. Time the shave is done, he's still a pig. Euro is done broke down and beat up, and today's bounce weigheth no more than styrofoam chips in a windstorm.

Yen remains above its 20 DMA (95.70) but unenthusiastic. Rose 0.07% today to 95.93 cents/Y100. Indicators say it has turned up, yet the chart pelaseth not the eye, nor showeth any strength.

Ten year treasury yield is dancing with its 50 DMA (2.843) in a correction. Lost 0.07% to 2.825%. May head lower in the immediate future, but the 30 year trend in bonds turned up this summer. Bigger changes coming here, no matter how slowly they unfold. Higher rates will bring more severe migraines to Janet and the rest of the international central bank criminals.

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.