Wednesday, June 04, 2014

The Gold Price Lost 30 Cents Closing at $1,244

4-Jun-14PriceChange% Change
Gold Price, $/oz1,244.00-0.30-0.02%
Silver Price, $/oz18.7660.0340.18%
Gold/Silver Ratio66.290-0.136-0.21%
Silver/Gold Ratio0.01510.00000.21%
Platinum Price1,435.900.400.03%
Palladium Price836.650.450.05%
S&P 5001,927.003.640.0
Dow in GOLD $s278.130.320.11%
Dow in GOLD oz13.450.020.11%
Dow in SILVER oz891.91-0.81-0.09%
US Dollar Index80.710.120.15%

The GOLD PRICE lost thirty cents to $1,244.00. Silver rose THREE POINT FOUR cents to 1876.6c.

The GOLD PRICE range today was $6.70, from $1,242.80 to $1,249.50. Silver's was even worse, 16 cents between 1888 c and 1872 c.

Only the full stochastics are even hinting at a turnaround. Markets only very rarely go this dead. Most hopeful thing I can say is that silver and gold appear to have run out of sellers, but I'm afraid to say that too loud or the Nice Government Men might hear me.

Be patient, be patient. We have now moved into the time of year most likely to see lows in gold and SILVER PRICES.

These markets are getting so lively I reckon I can just publish one commentary a week, then every Friday say, "Go see what I said last Friday."

I did see a worthwhile commentary by Larry Levin of Trading Advantage today entitled "Bull" putting the present stock bull market in context:

1. S&P500 has nearly tripled from the 6 March 2009 lows.

2. 5 year rolling return has been 5th largest in 140 years.

3. Current bull market is second longest in 80 years.

4. Current rally has spent 80 weeks above the 200 day moving average. Over the last 50 years, no other rally has lasted this long.

5. All against a context of an economy struggling to breathe. [End quotation]

Natural? Naww, not hardly. It implies a very large and non-profit entity buying, or another large and anti-profit entity printing money. Either way, tain't natural.

Stocks struggled today but the S&P500 made a new high. S&P500 added 3.64 to 1,927.88 (up 0.2%). Dow trailed behind, adding only 15.19 (0.09%) to 16,737.53. A trend in force remains in force until it changes.

I note with the same interest a toad fixes on a fly that the 10 year US treasury note yield has over the last 5 days staged a dramatic rebound. What did it hit? The upper boundary line of the channel it broke out of last June, and it has sliced through its 20 DMA and drawn a bead on its 50 DMA. Bear in mind always that the key to Federal Reserve control and the continuing acceptance of the dollar and the whole economic Potemkin village the central banks have cobbled together is INTEREST RATES. When the market finally wrests interest rates from the Fed's cold, icy hands, the Fed might as well go ahead and close its eyes, after first making sure its burial insurance is paid up. Ten year note yield today rose 0.5% to 6.606%.

US Dollar index pulled the same old trick today, retracing yesterday's range but closing at the high end of its range. Ended at 80.71, up 12 basis points. Dollar should rise higher although the daily chart shows a complete confusion that does NOT look like a rallying market. Euro lost 0.21% to $1.3599. Yen lost 0.2% to 97.7. Nice Government Men are keeping everything quiet.

I'm in Chattanooga tonight and Susan and I are going to enjoy supper with restaurateur Lawton Haygood and his wife Karen. Lawton founded The Boathouse on the Tennessee River in Chattanooga, just about my favorite restaurant in the Western World. But tonight we're going to another of his restaurants, the Canyon Grill up on Lookout Mountain. I'll be thinking about y'all eating peanut butter and jelly sandwiches while I'm up there.

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.