Friday, February 07, 2014

Gold and Silver Prices Rose Strongly this Week

Gold Price Close Today : 1,263.30
Gold Price Close 31-Jan-14 : 1,240.10
Change : 23.20 or 1.9%

Silver Price Close Today : 19.92
Silver Price Close 31-Jan-14 : 19.105
Change : 0.815 or 4.3%

Gold Silver Ratio Today : 63.419
Gold Silver Ratio 31-Jan-14 : 64.910
Change : -1.491 or -2.3%

Silver Gold Ratio : 0.01577
Silver Gold Ratio 31-Jan-14 : 0.01541
Change : 0.00036 or 2.4%

Dow in Gold Dollars : $ 258.44
Dow in Gold Dollars 31-Jan-14 : $ 261.69
Change : -3.25 or -1.2%

Dow in Gold Ounces : 12.502
Dow in Gold Ounces 31-Jan-14 : 12.659
Change : -0.16 or -1.2%

Dow in Silver Ounces : 792.88
Dow in Silver Ounces 31-Jan-14 : 821.71
Change : -28.84 or -3.5%

Dow Industrial : 15,794.08
Dow Industrial 31-Jan-14 : 15,698.85
Change : 95.23 or 0.6%

S&P 500 : 1,797.02
S&P 500 31-Jan-14 : 1,782.59
Change : 14.43 or 0.8%

US Dollar Index : 80.740
US Dollar Index 31-Jan-14 : 81.370
Change : -0.63 or -0.8%

Platinum Price Close Today : 1,377.60
Platinum Price Close 31-Jan-14 : 1,374.10
Change : 3.50 or 0.3%

Palladium Price Close Today : 708.60
Palladium Price Close 31-Jan-14 : 703.00
Change : 5.60 or 0.8%

That shoe's on the other foot now. Gold and silver rose strongly this week, stocks tumbled and only came back the last two days. US dollar index is floundering while even platinum and palladium rose.

The GOLD PRICE refuses to yield, and gained another $5.70 today to close Comex at $1,263.30 after a $1,272 high. Silver gained 1.2 cents (why bother?) to 1992c.

The GOLD PRICE has literally WALKED through it downtrend line from last April, just steadily trading sideways till it crossed that downtrending line. The gold price wants badly to close above $1,267.50, the December low, but can't quite get through. Ended today at $1,267. Mercy.

Since December 23 gold has closed every week higher than the last, except for last week. Very promising.

The SILVER PRICE remains above its 20 and 50 DMA, but without attacking 2050c can go nowhere. It must break out of that range.

The GOLD/SILVER RATIO has been dropping all this month, hinting of higher metals' prices.

Other markets remain hopeful for silver and gold. Gold/Bank Stocks is falling (gold is gaining strength against banks). Gold stock indices HUI, GDX, and XAU have all turned up after a puking-sick year.

One final spike down for silver and gold cannot be ruled out until the gold price climbs above $1,267.50 AND $1,314, the 200 day moving average -- and stays there. Still, this is the best horizon for metals we've seen in a year.

Still not clear to me whether we've seen the ultimate top in stocks or not. Either way, you can expect these countertrend rallies to be strong as a garlic milkshake. That bullish mentality still reigns o'er stocks, and will buy at the drop of a hat, and they'll drop the hat.

Yesterday stocks had their best day of 2014, and didn't slouch today,. Dow climbed 165.55 (1.06%) to 15,794.08. S&P500 scaled 23.59 (1.33%) to 1,797.02. Rally might carry to the top channel boundary, now about 16,000 where also today the 20 DMA lies (1,001) or to the 50 DMA (16,101.34). Not much higher. Analogues for those numbers on the S&P500 are 1804.25 and 1809.35.

Y'all ought to pause to remember that a bear market likes to pull the maximum number of victims into his den before he mauls them at his leisure.

Whoops, the debt limit fight is back. Aww, SHOOT! The yankee government's gonna run out of money unless congress acts by end February to let it borrow more. What if congress did nothing and the whole blasted thing shut down. Hush! I reckon I can dream, can't I?

US dollar index lost 0.30% (24 basis points) to 80.74, below the 20 DMA and barely above the 50 DMA. The dollar is doing nothing until it breaks out of the 81.50 - 79.50 range. Internally the dollar has an uptrend line at about 80.40, so breaking that would send it lower. Dollar's must-hold line is 80.

The Frankencurrency (euro) climbed back to the top of its downtrend channel and to its 50 DMA, which spot also coincides with the uptrend line the euro crashed through back in January. I am not impressed.

The Yen is atoning for its recent rally. Fell 0.24% to 97.49, but still in rally mode.

On 7 February 1947 the main cache of the Dead Sea Scrolls, dating to 150 BC - 68 AD was found in caves by the Jordan River.

Y'all enjoy your weekend!

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.