Thursday, April 24, 2014

The Gold Price Gained $6.30 to $1,290.50 Ending the February Correction

24-Apr-14PriceChange% Change
Gold Price, $/oz1,290.506.300.49%
Silver Price, $/oz19.680.251.30%
Gold/Silver Ratio65.568-0.526-0.80%
Silver/Gold Ratio0.01530.00010.80%
Platinum Price1,408.104.900.35%
Palladium Price802.5516.302.07%
S&P 5001,878.613.220.17%
Dow in GOLD $s264.33-1.30-0.49%
Dow in GOLD oz12.79-0.06-0.49%
Dow in SILVER oz838.41-10.87-1.28%
US Dollar Index79.87-0.08-0.10%

The GOLD PRICE gained $6.30 to $1,290.50 while silver added 25.2 cents to 1968.2c.

These numbers tell no tale without their ranges. The SILVER PRICE today a little before 8:30 a.m. New York time spiked to a low at 1896.8c, fulfilling that 1900c target. It tarried but an hour, then shot clean up to 1980c by 11:30, and remained the rest of the day above 1960c. Not only does this fulfill my awaited target, yea, it also makes the first half of a key reversal (break to new low with a higher close for the day). All that is needed now is a close tomorrow higher than today's.

The GOLD PRICE followed the same pattern, with an early low at $1,268.90. That's a new low for this move, and close enough to the $1,270 target to fit. Add to that a higher close for the day, a rebound of $22.50, and you'll begin to savor the strength.

Tomorrow both silver and gold prices need to close higher to confirm those key reversals, but I reckon they will.

That's it, waiting's over. That should be the bottom of the correction that began after the February high.

Okay, y'all listen up now. Most days nothing much happens. The world spins on about like it always has, and markets nudge a little one way or the other.

Here's a surprise: Dow Jones Industrial Average closed today unchanged at 16,501.65, something that only rarely occurs. Today's range was wider, top and bottom, than yesterday's, but the Dow gained nought. S&P500 rose 3.22 (0.17%) to 1,878.61. Although the S&P500 rose, it bumpeth only against its top trading channel line, and breaketh not out. Nasdaq Comp looketh none too perky, but did manage to close above its 20 day moving average.

Yea, but look, gaze steadily, stare at the Dow measured in metals. Dow in gold dropped 0.24% to 12.76 oz (G$263.77 gold dollars), not a great change from yesterday but baby step by baby step painting out a double top and probable reversal. Lo, the Dow in Silver sank 1.6% to 838.16 oz (S$1,083.68 silver dollars). Did the top for this move occur yesterday? Needs confirming, but the full stochastics turned down yesterday, along with the MACD.

Meanwhile, in the Cloud-Cuckoo Land of fiat national currencies, the US dollar index begins to look like a loser. Mark, it hath tried now thrice to pierce its 50 and 20 DMAs overhead, and hath failed each time. Looks like a SELL, but then, it's looked that way since 1934. Dollar index lost 8 basis points (0.1%) to 79.87. Euro gained 0.8% to $1.3828, and although above its 20 DMA, remains in a downtrend, like a mountebank in a moth-eaten tuxedo. Japanese Yen (is there some other yen?) gained 0.23% to 97.77 cents per 100 yen, but still looks ugly as five miles of bad gravel road.

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.