Friday, March 07, 2014

The Gold Price Lost 1 Percent or $13.60 Today in a Steep Drop to $1,338.10

Gold Price Close Today : 1,338.10
Gold Price Close 27-Feb-14 : 1,331.60
Change : 6.50 or 0.5%

Silver Price Close Today : 20.897
Silver Price Close 27-Feb-14 : 21.314
Change : -0.417 or -2.0%

Gold Silver Ratio Today : 64.033
Gold Silver Ratio 27-Feb-14 : 62.475
Change : 1.558 or 2.5%

Silver Gold Ratio : 0.01562
Silver Gold Ratio 27-Feb-14 : 0.01601
Change : -0.00039 or -2.4%

Dow in Gold Dollars : $ 254.17
Dow in Gold Dollars 27-Feb-14 : $ 252.62
Change : 1.55 or 0.6%

Dow in Gold Ounces : 12.296
Dow in Gold Ounces 27-Feb-14 : 12.220
Change : 0.08 or 0.6%

Dow in Silver Ounces : 787.32
Dow in Silver Ounces 27-Feb-14 : 763.47
Change : 23.85 or 3.1%

Dow Industrial : 16,452.72
Dow Industrial 27-Feb-14 : 16,272.65
Change : 180.07 or 1.1%

S&P 500 : 1,878.04
S&P 500 27-Feb-14 : 1,854.29
Change : 23.75 or 1.3%

US Dollar Index : 79.730
US Dollar Index 27-Feb-14 : 80.320
Change : -0.59 or -0.7%

Platinum Price Close Today : 1,483.00
Platinum Price Close 27-Feb-14 : 1,452.15
Change : 30.85 or 2.1%

Palladium Price Close Today : 781.60
Palladium Price Close 27-Feb-14 : 742.25
Change : 39.35 or 5.3%

The GOLD PRICE lost 1% or $13.60 today in a steep drop to $1,338.10 while silver tumbled 3% (64.5 cents) to 2089.7c. Owch! Below 2100c.

Right now it appears that the GOLD PRICE is entering a correction that will fall to the bottom of the trading channel, right now about $1,320 and rising, or even to the 200 DMA at $1,303.14. Conceivable is a drop to the neckline of the upside down head and shoulders it broke down in February, now about $1,280.

I find gold corrections almost as much fun as rubbing down my feet with broken glass and salt, but we've got to live through them. I expect this one to be minor, and to offer an opportunity to buy a bushel at a sale price.

On the monthly chart the gold price has three months' running rise. On the weekly chart the gold price just this week closed ABOVE the downtrend line from the August 2011 high. That's a milestone.

The SILVER PRICE today at last dropped below its 200 DMA (2100c) to the upper border of the trading range that contained it form November's end through February's middle. First target for a reversal is 2036c, the 50 day moving average.

Get your money can down off the shelf and get ready. Very soon silver and gold prices will offer you a buying opportunity. Watch closely.

I was expecting that last week put a little cap on silver and gold for a while, and another week makes that look accurate, even though gold gained this week. Stocks continue to rise, probing how much air hot government money can blow into a balloon. Unrest in southern Africa and Russia, home to most of the world's platinum and palladium, pushed up the white metals. Their piper often plays a different tune than gold and silver's. US dollar index set itself up for a trip to 79.

S&P500 made another new high this week, but the Dow laggeth still. Oddly, most indices (Nasdaq, Nasdaq 100, Russell 2000) dropped but the Dow rose 30.83 (0.2%) today to 16,452.72. S&P500 climbed 1.01 (0.05%) to end up at 1,878.04. Is the Dow making up its mind to play catch-up? If so, stocks can go higher into May.

Dow in Gold rose 0.97% to 12.28 oz (G$253.85 gold dollars), and punched a little hole in the downtrend line and the 20 DMA (12.24). This whisper and today's gold drop tends to confirm my suspicion that the DiG is ripe for a rally to correct briefly its long fall from December.

Dow in silver rose 3% to 787.40 oz, but unlike DiG remains below its downtrend line. Right now that coincides with the 50 DMA (795.56 oz). Both the DiS and DiG will move higher for a while.

US Dollar Index rose an embarrassing five basis points (0.06%) today, just enough to avoid classification with the Zimbabwean dollar. It's a bad week indeed when a Russian invasion of Ukraine can't raise the dollar index.

Dollar Index has formed a falling wedge. Wedges usually resolve with a breakout in the opposite direction they point, so that suggests the dollar should soon begin some rally, but perhaps not before visiting 79.

The euro settled questions about its short term future by rising 0.15% to $1.3882. Well, really I am anticipating because the Euro closed smack on its old upper trend line, but I think a two day close above the last high ($1.3847) will probably carry it higher. Technically it could run to $1.4000 or $1.4200, but 'tis hard to picture how the eurocrats could stand that much downward pressure on their exports. Maybe the Fed is strong-arming them?

The yen, on the other hand, has tanked this week, and today lost another 0.14% to 96.84, below its 50 DMA (96.97). Wait to buy your Japanese dinner china, as it will be cheaper next week.

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.