|Gold Price, $/oz||1,271.70||-3.20||-0.25%|
|Silver Price, $/oz||19.72||0.02||0.10%|
|Dow in GOLD $s||273.23||1.13||0.42%|
|Dow in GOLD oz||13.22||0.05||0.42%|
|Dow in SILVER oz||852.31||0.57||0.07%|
|US Dollar Index||80.71||0.17||0.21%|
|3 Day Gold Price Chart|
|30 Day Gold Price Chart|
|3 Day Silver Price Chart|
|30 Day Silver Price Chart|
Both the silver and GOLD PRICE daily charts are a bit ambiguous. Both might have finished a correction, but more likely is one more leg down.
Looking past the Comex to trading the whole day, the gold price closed unchanged although during the day it dipped below its 20 Dma ($1,265.21). Low came at $1,258, high at $1,275.50, so it closed nearer the high. The gold price still must batter down the gate at $1,280 resistance, but more importantly, the 200 DMA at $1,290.60. These are the first baby steps. Beyond that the gold price must pull on those seven league boots and step out over $1,305, then $1,315 (May's High) and most important, $1,331.40 (April's high). All momentum indicators are positive with plenty of room to climb.
The SILVER PRICE touched back to its 50 DMA (1942c) today, then closed near the 1977c high. Low came at 1943c. I'm nothing but a nacheral born durned fool, but this looks like a strong rally to me. Determined. I'll feel chipper as can be as long as silver stays above 1950c. Over 2050c, it will begin to run. Not coincidentally, the 200 DMA stands at 2052c.
On the Burning Platform there's an especially good article, "Fourth Turn Accelerating." It's a little long, but the overview of our present condition economically, socially, and politically is quite thorough and insightful. It will make connections in your mind. Look at http://bit.ly/1qpqKJ3
Looks like the War Party (Republican/Democrat) is beginning to beat the drums for another war in Iraq, charging that somehow Iraqi rebels pose a threat to the US. With the lumbering US economy in trouble, war offers an easy political out. And it increases demand, for stuff that blows up and therefore has to be re-ordered over and over. Good for GDP, bad for people and other living things.
Although it gained 17 basis points (0.2%) today and closed at 80.71, the US dollar index has only been dancing sideways for the last three days. Until it closes above 81, the dollar's intentions remain suspect. If it can clear 81, it will run at least to 81.50, maybe higher.
Euro changed its mind again today and fell 0.2% to $1.3546. It ought to stage at least a little snap-back rally here, but if it falls through $1.3500 first, it's cooked -- clean through.
Yen lost 0.32% to 97.88. Remains in the same rangebound track between 99 and 96, and until it beats one of those numbers will keep on snoozing.
Ten year Treasury yield today hit and closed at its downtrend line from the year's opening. Closed at 2.655%. Any higher close tomorrow confirms a breakout, and a close above the 200 day moving average at 2.714% turns the yield -- and with it other interest rates -- up. Remember this comparison: Higher Interest Rates are to Janet Yellen as crucifixes are to Count Dracula.
Today's little gains in stocks proved nothing. S&P500 and Dow are both hovering above their 20 DMAs. Dow rose 27.48 (0.16%) to 16,808.49 while the S&P500 augmented by 4.21 (0.22%) to 1,941.99.
Dow in Gold rose a negligible 0.16% to 13.22 oz (G$273.28 gold dollars), with the 20 DMA at 13.23 oz (G$273.49). Excitement reigned in the Dow in Silver however, where a lethargic 0.29% drop to 851.06 oz (S$1,100.36 silver dollars) took the DiS down below the 50 DA (853.11 or S$1,103.01) It has already broken down through the 20 DMA, which on the advance from March had served as the safety net under it. Much more downside and I'll be forced to declare the Dow in Silver knocked out.
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.