Tuesday, July 15, 2014

The Gold Price Closed Down $9.40 at $1,296.90

15-Jul-14PriceChange% Change
Gold Price, $/oz1,296.90-9.40-0.72%
Silver Price, $/oz20.84-0.02-0.11%
Gold/Silver Ratio62.225-0.385-0.61%
Silver/Gold Ratio0.01610.00010.62%
Platinum Price1,484.30-8.00-0.54%
Palladium Price866.30-5.15-0.59%
S&P 5001,973.28-3.82-0.19%
Dow in GOLD $s271.942.040.76%
Dow in GOLD oz13.150.100.76%
Dow in SILVER oz818.571.120.14%
US Dollar Index80.430.000.00%

3 Day Gold Price Chart
3 Day Silver Price Chart
The GOLD PRICE lost $9.40 (0.72%) to $1,296.90. Silver inched down 2.2 cents to 2084.2c.

Gold has reached that $1,295 area where its 50 and 200 day moving averages are clustered along with lateral support. If the GOLD PRICE closes much below $1,290 or stays below that point for long, correction could get bloody.

The SILVER PRICE merely cut through its 20 DMA today, but remains above its 200 (2037c) and 50 DMA (1994c). Strong support around 2050c might catch silver, but its too early to tell. More likely is a dip toward 2000c.

Stay sharp! We're going to get a chance to buy here shortly.

Mother Janet Yellum crawled out of her den today, saw her shadow, and it scared her so bad she ran back into the hole, predicting we will have three more months of Quantitative Easing and another half decade of ZIRP.

Mother Janet also scared many of the Wall Street groundhogs (earthswine?) when she squeaked something about overstretched stock valuations . Stocks closed mixed with the Dow up barely, the S&P500 down, and other indices lower.

Mother Yellum was heard to peep and cheep that the US economic recovery was still incomplete, and so needs still the Fed's "help." (Y'all stop laughing that loud. It's bad manners to guffaw at quasi-government officials. Show some respect.)

I don't have a clue why but currencies took this jammer-jabber to means something "good" for the US dollar and "bad" for the Franken-currency and the Yen. Some reports commentated that because Mother Yellum praised the growth in employment, it signaled that the Fed groweth confident the US economy is improving. Yet why, one wondereth, would a better US economy be good for the US dollar? Might it mean more inflation, too, and therefore a cheaper dollar? Never mind. You will never unravel your way through this to anything rational, not with fiat money. Nothing rational can come from the irrational, any more that good fruit can come from a bad tree.

Well, let's see how much damage the Fed's "help" did to markets today.

Stock markets quivered with confusion. Russell 2000, Nasdaq, and Nasdaq-100 all dropped, as did the Amex Composite. S&P500 lost 3.82 (0.19%) to 1,973.28 but the Dow added a skinny 5.26 (0.03%) to 17,060.68.

Here we go again. Dow made a marginal new intraday high, but without a new high close, and closed about where it was yesterday. Feels like it is stuck in the mud. S&P500 reached new high for the move at today's high, but it closed lower. Yes, that's the first part of a key reversal. Also, today's peak was lower than that on 3 July -- double-toppy appearance.

Meanwhile the correction continues in the Dow in Metals. Dow in gold climbed 0.86% to 13.15 oz (G$271.83 gold dollars), well above its 20 and 50 DMAs (12.86 oz and 12.98 oz). Momentum weathervanes now point up.

Dow in Silver rose 0.37% to 816.73 oz ($1,055.97 silver dollars). That punched through its 20 DMA (808.49 oz or S$1,045.32). Simply watch and exercise patience and calm. It's a correction y'all knew was coming.

US Dollar Index rose today to its current (since early June's high) downtrend line, but not through it. Closed right on the line at 80.43, up 21 basis points or 0.26%. Dollar index has formed an even-sided triangle, which tells us not a word about which way 'twill break out. However, it hints it might break out upside, but I wouldn't use that guess as a rope to swing over hell on.

Euro took the hit today, closing down 0.37% to $1.3570, below critical support at $1.3600. That drags the euro through the 20 DMA ($1.3617) and points it toward the earth's core.

Yen abideth yet in shivering irresolution. I wax ashamed to keep reporting the yen remains in the same long, narrow triangle, but what can I do? Stay away.

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.