Thursday, April 03, 2014

The Gold Price Eased Off $6.10 Today Closing at $1,284.40

3-Apr-14 Price Change % Change
Gold Price, $/oz 1,284.40 -6.10 -0.47%
Silver Price, $/oz 19.79 -0.25 -1.22%
Gold/Silver Ratio 64.915 0.489 0.76%
Silver/Gold Ratio 0.0154 -0.0001 -0.75%
Platinum Price 1,443.80 6.70 0.47%
Palladium Price 789.10 0.50 0.06%
S&P 500 1,888.77 -2.14 -0.11%
Dow 16,572.55 -0.45 -0.00%
Dow in GOLD $s 266.73 1.25 0.47%
Dow in GOLD oz 12.90 0.06 0.47%
Dow in SILVER oz 837.59 10.22 1.24%
US Dollar Index 80.20 0.23 0.29%

The GOLD PRICE eased off $6.10 (0.5%) today to close Comex at $1,284.40. The SILVER PRICE backed up 24.5 cents (1.22%) to 1978.6c.

About the time of that European announcement, I reckon, about 10:a.m. anyway, silver broke down and hit the day's low at 1966c. That was a V-bottom -- somebody was waiting to buy down there. Bounced right back above 1975-1980c, but went no further. Erased Wednesday's gains and left us where we began.

Not quite so with the GOLD PRICE. Gold's action today left a slightly higher low ($1,281.90) than Tuesday's ($1,277.40). Doesn't sound like much, but catches your eye on a five day chart.

Line is plainly drawn: the gold price must clear $1,295. A drop below $1,277 would gainsay my interpretation that gold has either (1) seen its low for this move or (2) seen at least an interim low.

We'll know tomorrow what happens, unless that lying government report skews everything.

I often tilt my head in bewildered wonder at the factors and events that drive markets nowadays. Tomorrow a yankee government employment report will be issued in which they will lie shamelessly about the jobless numbers. Nobody sane believes these numbers, and the government will revise them in six weeks or so to prove they were lying in the first place. NOTWITHSTANDING those trumped up job numbers will drive markets tomorrow, as if they actually meant something, or as if the plans of a well-run, efficient business could be cast into disarray by one lying government report.

It's getting so I believe everybody but y'all and me are nuts, and I ain't too sure about y'all.

Didn't anything startling happen in markets today. Stocks backed off, holding their breath for that precious priceless prevarication due tomorrow. Dollar rose because the ECB mumbled some oracle, and silver and gold cringed because the scrofulous dollar rose (probably).

Dow closed 16,572.55, down a miniature 0.45. S&P500 lost 2.15 (0.11%) to 1,888.77. Both broke out yesterday upside, MACD for both gave a buy signal, but if you look at that declining volume over the last year while all these new all-time highs have been made, you might have to scratch your head and wonder if stocks ain't running out of gas.

The little jiggle the Dow in Gold and Dow in Silver jiggled today from stocks flattening and silver and gold dropping, frankly, just ain't worth talking about. Nothing changed.

The criminals running the European Central Bank today pledged to use "unconventional measures" to -- get this, write it down, mark this -- battle "low inflation." O, shucks! We're not picking the public's pockets fast enough, so let's crank that inflation up to melt their savings and capital, and help the banks. ECB implied it would print new waves of money, but kept interest rates near zero.

On that news the US dollar index (killers of hope, gobbler of savings) rose a less than spectacular 23 basis points or 0.3%. I will concede that takes it above the 05 DMA 80.31 and points it toward the 200 DMA at 80.99, and throws a leg over 80.50 lateral resistance, so the dollar should rise more.

The scabby euro, on the other hand, sank away from resistance, confirmed its down trend with another lower high and lower low, and broke below its 50 DMA ($1.3734). Closed down 0.35% at $1.3719. Tugging at the reins like it wants to drop to $1.3500. And the Japanese yen --Is there any reason to talk about that? Dropped 0.04% to 96.24 cents/Y100, still a-fainting.

Aurum et argentum 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.