Thursday, August 07, 2014

The Gold Price Added $4.10 to Close at $1,310.80 Today

7-Aug-14PriceChange% Change
Gold Price, $/oz1,310.804.100.31%
Silver Price, $/oz19.95-0.03-0.17%
Gold/Silver Ratio65.7010.3170.48%
Silver/Gold Ratio0.0152-0.0001-0.48%
Platinum Price1,483.0016.301.11%
Palladium Price856.557.150.84%
S&P 5001,909.57-10.67-0.56%
Dow in GOLD $s258.13-2.00-0.77%
Dow in GOLD oz12.49-0.10-0.77%
Dow in SILVER oz820.42-2.36-0.29%
US Dollar Index81.590.090.11%

3 Day Gold Price Chart
3 Day Silver Price Chart
The GOLD PRICE added $4.10 to $1,310.80 today while silver lost 3.4 cents to 1995.1c.

By the tee-tiniest of margins the gold price in the aftermarket closed above that downtrend line from October 2012. The Comex close at $1,310.80 wouldn't have been enough. Can't count that as a breakout, but it does command a little respect. Not much, just a little. Thoughts are beginning to circle in my mind like buzzards over roadkill that the GOLD PRICE completed a Right shoulder of an upside-down head and shoulders with that drop to $1,281 last week. Thoughts haven't landed yet, but they are circling.

I am never quite easy when silver and gold prices are rising and SILVER gainsays gold by falling when gold rises. I am further miffed that silver will not close above 2000c resistance. This is bad taste and bad form, although I will grant the possibility that last week's lows about 1975c market the extent of the correction. That is a sucker bet, however, because silver has not given yet a firm witness of turning around. A close above 2060c would do that without reservation or hesitation.

If nothing more that Ukraine-anxiety is driving this rally-ette, 'twill fail soon and give us further downside. But I am a hypocrite. I bought a fairly stout (for me) amount of both silver and gold prices today.

Yesterday I meant to tell y'all that the 10 year not yield fell hugely, but recovered on the close to close at the top of the range. Today it fell 2.02% to end at 2.424%. That all looks very odd to me, making that huge fall but then closing at the day's high. Anyway, it appears to be a breakdown in interest rates (breakout upside in bonds, as they move opposite to their interest rates.

Stocks kept on falling today. Dow lost 75.07 (0.46%) to end the day at 16,368.27 -- 1.14% DOWN from where it began the year. S&P500 fell 10.67 (0.56%) to 1909.57.

Today the Dow punched into, but closed not below, its 200 DMA (16,343.38). It hath yet further to fall, as the meteor from the sky, the apple from the tree, and the job openings on Wall Street.

S&P500 closed below its one hundred day moving average (1,913.72). Lower prices coming.

Land o' Goshen! As my country aunts used to say, that Dow in Gold fell nearly to the uptrend line from August 2011! Today that line stands about 12.40 (G$256.33) and the DiG closed down 1.03% at 12.45 oz (G$257.36). (I have no idea why they said that or even what they meant, other than extreme surprise and astonishment.)

Dow in silver skidded 0.16%, right along the falling fanline. Ended at 819.03 oz (S$1,058.95 silver dollars). 200 DMA awaits below at 808.15 oz.

US dollar index rose 9 basis points to 81.59, telling us nothing but the dollar's reluctance to fall. Euro lost 0.16%, while the yen, stretching its muscles, rose 0.03%. Nothing happening in scrofulous currencies.

I'm already in hot water because Susan has been all day preparing the Shoe (our house) for a birthday party for my daughter Mercy tonight. You have never seen anybody serious until you watch my wife planning and preparing a party -- one of the reasons I love her, among many, but I cannot be late so I have to run but I have some good news. Today I went to see my friend Daniel in the hospital and when I asked him to squeeze my hand, he could. When I asked him how he was, he mouthed around the breathing tube, "Pretty good." I cried, I don't mind telling y'all. Thank God for his mercy, and please keep on praying for Daniel Freemon.

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.