Thursday, August 14, 2014

The Gold Price Climbed $1.10 to Close at $1,313.90

14-Aug-14PriceChange% Change
Gold Price, $/oz1,313.901.100.08%
Silver Price, $/oz19.870.060.31%
Gold/Silver Ratio66.121-0.148-0.22%
Silver/Gold Ratio0.01510.00000.22%
Platinum Price1,470.20-0.70-0.05%
Palladium Price886.654.550.52%
S&P 5001,955.188.460.43%
Dow in GOLD $s262.960.750.29%
Dow in GOLD oz12.720.040.29%
Dow in SILVER oz841.100.530.06%
US Dollar Index81.64-0.04-0.05%

3 Day Gold Price Chart
3 Day Silver Price Chart
The GOLD PRICE climbed $1.10 (0.08%) to close Comex at $1,313.90. Silver gained 6.1 cents to 1987.1c. Everything about gold says, "I'm going up!" while silver stubbornly says, "I'm not interested."

At least, finally, silver and gold prices are talking the same direction. Here's how their disagreement shapes up:

The GOLD PRICE has been in a rising trend for the last 8 days, and stands above its 200, 50, and 20 DMAs, in other words, perfect alignment for a rally. Gold's RSI stands above 50 and is rising, its MACD is rising, rate of change is positive and upward, and full stochastic is not yet overbought. I suppose gold might also have a check in its pocket signed by the US Treasurer for a million bucks, but that's about all it lacks. Whoops, I neglected to note that it has traded through and above the downtrend line from the October 2012 high.

All that argues the next move is to the second floor, but not silver. In the last eight days the SILVER PRICE has made -- at the beginning and last two days -- a sort of tiny double bottom at 1970c. It languishes below its 200 DMA, and 50 DMA and 20 DMA, which has turned down. MACD is negative. Rate of change has turned up but is still negative. RSI crouches below 50 at 39.54. Silver has, it is true, been trading since June above the downtrend from the August 2013 high.

To break this impasse downward, gold would have to close below $1,280 and silver below 1970c. To the upside, gold needs a close over $1,325 and silver over 2050c. Till that happens we are just marking time.

I expect both will resolve upward, and ought to shortly.

Dow gained 61.78 (0.37%) to 16,713.58, reaching toward the point of 50% correction of the plunge (16,743) and reaching toward its 20 day moving average (16,754). S&P500 rose 8.46 (0.43%) to 1,955.18. S&P500 already passed the 50% correction at 1,948. but hits the 61.8% correction at 1,958.32.

Tomorrow will speak loudly.

Dow in silver jigged down today, 0.11%. Dow in gold jigged up 0.22%. Still waiting on a message from Dow in silver that it's turning down. Dow in Gold remains below 200 day moving average, and in full skydiving mode.

Currencies jiggled, but did nothing. US dollar index lost 4 basis points to close at 81.64. Euro rose 0.01% (get out your electron microscope) to $1.3366 and the yen fell 0.03% to 97.61.

I searched the news today for something silly or stupid to lampood but it was all nasty, brutal, or just plain stupid. I'll pass.

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.