Gold Price Close Today : 1260.40
Change : 20.30 or 1.64%
Silver Price Close Today : 19.389
Change : 0.284 or 1.49%
Gold Silver Ratio Today : 65.006
Change : 0.096 or 0.15%
Silver Gold Ratio Today : 0.01538
Change : -0.000023 or -0.15%
Platinum Price Close Today : 1385.00
Change : 10.90 or 0.79%
Palladium Price Close Today : 702.50
Change : -0.50 or -0.07%
S&P 500 : 1,741.89
Change : -11.60 or -0.66%
Dow In GOLD$ : $252.13
Change : $ -6.62 or -2.56%
Dow in GOLD oz : 12.197
Change : -0.320 or -2.56%
Dow in SILVER oz : 792.86
Change : -19.62 or -2.42%
Dow Industrial : 15,372.80
Change : -149.76 or -0.96%
US Dollar Index : 81.140
Change : -0.240 or -0.29%
Whoa. Stocks got whupped today with a big knobbly stick. Silver and GOLD PRICES reversed. My, my.
The GOLD PRICE shot up $20.30 to $1,260.4, higher by 1.6%. Silver gained 28.4 cents (1.5%) to 1938.9 cents.
But look closer. Friday gold made a tiny reversal by closing slightly higher than Thursday. Today it defended about the same low, then rocketed to the downtrend line and closed near there, above all its moving averages except the 200 DMA. That last is now at $1,317.29, and slowly turning up, a good sign, plus this two day upward tergiversation.
Gold prices have now thrice beat on the door of this downtrend line, and today's reversal begs the conclusion that it will pierce that line tomorrow or the next day. Twould be extremely bad taste if it didn't, not to mention weak. Ought to run up at least $100 or so.
The SILVER PRICE hath bounced off that support line left by December lows, and like gold, strengthened on Friday and closed higher today. All that said, silver remains below its 20 and 50 DMAs (now 1982c and 1977c). Must cross them, but more strategically, 2050c. All indicators pointing toward the sun today.
To escape the shadow of one last possible plunge to a new low, gold needs to close above this downtrend line from April and the resistance at $1,267.50, then jump higher to $1,361.80, the October high. How high could this rally carry gold? If the height of what I take to be an upside down head and shoulders reversal (Nov - Jan) measures the gain, then it should run at least to that $1,361.80 October high.
But first, confirmation by puncturing that downtrend line and support at $1,267.50.
Dow fell 326.05 (2.08%) to 15,372.80, below the 200 DMA (15,469.68). S&P500 lost 2.28% (40.7) to 1741.89. Too early to judge whether the January top was the ultimate -- another may come later in the year -- but for now stocks are headed firmly down, perhaps to 14,760-14,720, the September and October lows. A genuine waterfall today.
Today's stock weakness and metals strength drew the Dow measured in metals down.
Dow in gold sank 3.06% to 12.23 oz (G$252.82 gold dollars) and drew nearer the 200 dma (11.79 oz or G$243.72). It falleth ever nigher its long term downtrend line.
Dow in silver dropped 2.66% to 796.52 oz, well below the 816.54 50 DMA but still way above the 200 DMA (731.61). Rolling over, over, over.
US Dollar index fell today 24 basis points (0.3%) to 81.14, but like a pouty child still refuses to confirm any rally. Yen rose 1.04% to 99.04 and certainly is rallying. Euro at 1.3525 still looks sick as a snake-bit cur.
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.