Thursday, March 27, 2014

The Gold Price Should Rally From Here

Gold Price Close Today : 1294.70
Change : -8.70 or -0.67%

Silver Price Close Today : 19.690
Change : -0.069 or -0.35%

Gold Silver Ratio Today : 65.754
Change : -0.211 or -0.32%

Silver Gold Ratio Today : 0.01521
Change : 0.000049 or 0.32%

Platinum Price Close Today : 1397.20
Change : -9.30 or -0.66%

Palladium Price Close Today : 761.00
Change : -20.15 or -2.58%

S&P 500 : 1,849.04
Change : -3.52 or -0.19%

Dow In GOLD$ : $259.68
Change : $ 1.66 or 0.64%

Dow in GOLD oz : 12.562
Change : 0.080 or 0.64%

Dow in SILVER oz : 826.01
Change : 2.64 or 0.32%

Dow Industrial : 16,264.23
Change : -4.76 or -0.03%

US Dollar Index : 80.110
Change : 0.030 or 0.04%

The GOLD PRICE sank $8.70 to $1,294.70 and the SILVER PRICE lost 6.9 cents to 1969.0c. Disaster? Not quite. Today's range with a 1958c low touched the downtrend line form the April 2013 high, same line silver broke through skyward in April. This constitutes a kiss back to breakout, and should hold -- should.

The GOLD PRICE low at $1,291.20 brought it nearly to that 50% correction at $1,287, which is the neckline of the upside down Head and Shoulders gold broke through in February. Gold has now tangled its feet in the 50 DMA ($1,303.8) and 200 DMA ($1,299.41). Today's trading pretty much hit my targets for this decline. Now we might from here get a rally, then one more touch back to these levels.

Of course, I will be shown once again to be no more'n a nacheral born fool from Tennessee should silver and gold prices drop sharply. Fool or not, I don't see that on the chart.

Y'all have mercy on me today. I have to attend a show-off home schooling event for some of my grandchildren, and my dear wife will flay me if I'm late.

Here are the highlights. Stocks continued to deteriorate, although the closes didn't show the full view of it. Closes were near yesterdays, but the lows were a lot lower, so the range was much lower than yesterdays. Whoa! S&P500 broke DOWN out of that even-sided triangle we've been watching. Dow lost 4.76 (0.03%) to 16,264.23 while the S&P500 slid 3.52 (0.19%) to 1,849.04. Should follow through lower and lower.

US dollar index finally stood up and gained a whole 16 basis points (0.2%) to 80.28. This leaves the chart hopeful, but nothing to brag about. Euro looks like it ate a pound of bad meat, dropped 0.32% today to $1.3741, not far from turning very negative by falling below its 50 DMA ($1.3715). Yen lost 0.14% to 97.87 c/Y100, still treading water.

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.