Monday, July 07, 2014

It Appears Silver and Gold Prices Will Correct this Week

7-Jul-14PriceChange% Change
Gold Price, $/oz1,316.50-3.90-0.30%
Silver Price, $/oz20.97-0.12-0.58%
Gold/Silver Ratio62.7920.1810.29%
Silver/Gold Ratio0.0159-0.0000-0.29%
Platinum Price1,494.90-11.90-0.79%
Palladium Price869.246.950.81%
S&P 5001,977.65-7.79-0.39%
Dow in GOLD $s267.320.100.04%
Dow in GOLD oz12.930.000.04%
Dow in SILVER oz811.992.650.33%
US Dollar Index80.26-0.01-0.01%

3 Day Gold Price Chart
30 Day Gold Price Chart
3 Day Silver Price Chart
30 Day Silver Price Chart
The GOLD PRICE today gave back $3.90 (0.3%) to close Comex at $1,316.50. Silver sliced off 12.3 cents (0.58%) to 2096.6c.

It appears silver and GOLD PRICES will correct this week. It might be mild, but might turn really scary -- bull markets have a habit of doing that, to "shake off as many riders as possible." Y'all, of course, are clever enough to recognize any correction as an opportunity to back up your truck and load up.

Mild correction takes the SILVER PRICE to 2040c (200 DMA) and gold to $1,295, even 1,288 (200 DMA). Oddly enough, a 50% correction of the larger move, from June first's $1,240.20 to July first's $1,334.90 would also take gold to $1,287.55, right on the 200 DMA at $1,287.68. A tougher correction might take gold to $1,275, silver to 2000c or even 1950c.

Watch out! Closes above 2133.5c or $1,335 choke off any correction and add another upleg to the metals' rise.

Nobody was much interested in markets today, probably still hung over from the weekend.

Stocks dropped after last Thursday's new highs. Dow lost 44.05 (0.26%) to 17,024.21. S&P500 edged back 7.79 (0.39%) to 1,977.65. Chance is large y'all will see a significant stock peak this month.

More interesting to me than the raw stock performance is stocks' performance against metals. Dow in silver has continued to rise, another 0.51% today to 810.14 oz (S$1,047.45 silver dollars) and has bounced off its 200 DMA and punctured its steep downtrend line. Nothing yet suggests anything more than an ordinary correction here.

Dow in gold was flat today at 12.93 oz (G$267.29 gold dollars). It has reached important resistance made stiffer by the confluence of the 20 DMA (13.00 oz/G$268.73) and 50 DMA (19.97 oz/G$268.11).

Currencies flat lined today except for the yen. US dollar index lost one measly basis point to end at 80.26, euro lost 0.02% to $1.3605. Yen rose 0.32% to 98.19, but did no more than creep above its intertwined 20 and 50 DMAs. Remains within that long even-sided triangle.

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.