Monday, June 30, 2014

The Gold Price Rose $2.80 to Close at $1,321.80

30-Jun-14PriceChange% Change
Gold Price, $/oz1,321.802.800.21%
Silver Price, $/oz21.01-0.07-0.33%
Gold/Silver Ratio62.9200.340.55%
Silver/Gold Ratio0.0159-0.0001-0.54%
Platinum Price1,481.002.500.17%
Palladium Price843.550.300.04%
S&P 5001,960.23-0.73-0.04%
Dow in GOLD $s263.71-0.92-0.35%
Dow in GOLD oz12.76-0.04-0.35%
Dow in SILVER oz798.34-0.02-0.00%
US Dollar Index79.81-0.26-0.32%

3 Day Gold Price Chart
30 Day Gold Price Chart
3 Day Silver Price Chart
30 Day Silver Price Chart
I promised my wife I'd be on time today & she's going to hit me upside the head with a big stick if I'm late, so I'll make this short.

First, I am baffled by the GOLD PRICE today. One of the analytical services I receive sent a special message yesterday about the sudden rise in Commercial Short positions in the Commitments of Traders Reports. Generally Commercials are the "smart money", and when they short, you can prepare your heart (& pocketbook) for a drop. Silver's CoT Commercial Shorts grew even more than gold's.

But in the face of that the GOLD PRICE rose $2.80 to close at $1,321.80, and that Comex close looks like a Potemkin Close because immediately after the close gold shot through $1,326 and remains at $1327.90 in the aftermarket. Painting the tape, Nice Government Men?

The SILVER PRICE gainsaid gold by losing 7 cents to close at 2100.7c. What do I not like about silver? That flag on the chart that looks like it is rising, which is a bearish sign. And it's as overbought as a pretty girl's cake at a county fair bake sale. But if it closes above 2150c, it'll fly.

US dollar index is pushing the gold price up. It lost 26 basis points to 79.81, down 0.33%. Drop started about 10:30 a.m. and breaks through the old downtrending channel line, and support around 80, and the 50 DMA, and it's just a wretched mess. Will sink further, as witness the rising Euro (up 0.32% to $1.3692 & above its 200 DMA & the Yen at 98.69, above its 200 DMA but up only 0.05%.

Stocks finished down on the day but up for the month. Dow lost 25.25 (0.15%) to 16,826.60 while the S&P500 shaved off 0.73 (0.04%) to 1,960.23. Dow in gold and Dow in silver both fell today. At least that indicator isn't welching on us.

Y'all have mercy, my wife is pulling up! Watch for gold tomorrow. A close above $1,331 carries it aabove those COT worries for a while.

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.