|Gold Price, $/oz.||1,293.30||1,291.70||-1.60||-0.1|
|Silver Price, $/oz.||19.292||19.388||0.096||0.5|
|Dow in Gold Dollars (DIG$)||263.59||265.76||2.17||0.8|
|Dow in gold ounces||12.75||12.86||0.10||0.8|
|Dow in Silver ounces||854.83||856.52||1.70||0.2|
|US dollar index||80.11||80.43||0.32||0.4|
On Comex, where they take no prisoners, the GOLD PRICE lost $3.30 to end at $1,291.70 while silver gave up 10.2 cents and closed at 19.388. Past seven days have witnessed silver and gold as somnolent as I've ever seen them. Some big event is needed to break this impasse. Higher dollar doesn't help, but that doesn't always keep the gold price down. More help would come from stocks dropping sharply.
The last week hasn't changed anything for silver and GOLD PRICES. Gold remains in a narrow even-sided triangle bounded today by roughly $1,280 and $1,303.75, and it groweth narr'er by the day. The SILVER PRICE is in an uptrend that began in May but has since forgotten what it was doing. Silver can't even stay above its 20 day moving average, but then, neither can the gold price. Frankly, best thing that could happen now would be for silver and gold to fall sharply, clear out the shorts, and set the stage for another rally. This dead-in-the-water sidewise float is for the fowls.
Monday is a US holiday, Memorial Day, but Tuesday is not. Look for some fun to start next week.
By the way, British regulators today fined Barclays Bank $48 million for the actions of a trader in the London Gold Fix in June 2012. Barclays is one of four Banksters that participates twice daily in the London Gold FIX. In this case the trader bogused up enough orders to push gold below a threshold that would have forced Barclays to pay a customer $3.9 million and profited the bank $1.75 mn. This comes one day after Barclays was slapped with a $450 million fine for rigging LIBOR. Listen: you can always trust a bank. . . To act like a bank. After all, it stands for Bilk All Ninety-eight-point-six Kustomers.
Markets is people, and people don't make sense. Thus I will not torture myself over the apparent contradictions, I will just sit tight and wait till they go away, without pretending I can explain them.
Stocks struggled through the week and managed to rise a little by week's end. Metals are in the deadest slumber I can remember (but I'm getting old). White metals had a rotten day today but closed higher for the week. US dollar index got up off the mat and advanced to its 200 DMA. Pretty good for a nasty, scrofulous, parasitical fiat currency, but tough on the euro and yen.
The Dow and S&P500 are diverging here a bit. S&P500 nearly touched its last intraday high (1,902.17) but closing at a new all time high close, 1,900.53 (up 8.04 or 0.42% today). Meanwhile the Dow, up today 63.19 or 0.38% to 16,606.27, lags far behind. Its last intraday high was 16,735.51 and its all time high close 16715.44 (13 May, same as S&P500).
Other indices can't agree, either. The Nasdaq 100 broke out of its downtrend six days ago, but remains far below its all-time high. Russell 2000 remains in its downtrend but hit the downtrend line today. Wilshire 5000 remains below its all time high.
These are not smashing new highs but struggling highs. Signs of a top abound, head and shoulders patterns, broadening tops, diamonds. Stocks may have shot their wad today, or might make a slightly higher high next week, but I believe the end draweth nigh.
Dow in Gold continues to dither. Rose today 0.47% to 12.84 oz (G$265.43 gold dollars). It did close above the 20 DMA but remains locked in a sidewise range.
Dow in silver dithereth even more tightly than the Dow in gold. Rose 0.49% to 852.92 oz (S$1,102.77 silver dollars). A big break one way or the other approacheth. May get one more new high before this ends.
The US dollar index on 7 May turned up from a 78.93 low and shot clean up to its downtrend line in six days (about 80.40). Then it fainted. Last three days it has shown life again, and today broke above its downtrend line, touched its 2020 DMA (80.490 and closed higher by 14 basis points (0.17%).Dollar intends to move higher, but must climb the stile at 80.80. Euro has just plumb broke down beyond redemption. Touched its 200 DMA ($1.3627) today and closed down 0.16% at $1.3624. Appears the trend for the next few months will be higher dollar, lower euro. Great for you folks planning European vacations. Japanese yen three days hence struck its 200 DMA (98.95) and was knocked out cold. Lost another 0.23% today to 98.07c. Technically in an uptrend since April, but oh, Mercy! It's a slow one.
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We don't administer IRAs as a trustee, but with New Direction IRA as your IRA trustee you can buy and silver precious metals through us. One reason I like New Direction is that they understand AND co-operate with our gold-silver swapping strategy. More, they accomplish that in few days with minimal paperwork.
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Y'all enjoy your weekend!
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.