Tuesday, August 19, 2014

The Gold Price Dropped $2.60 Closing at $1,295.10

19-Aug-14PriceChange% Change
Gold Price, $/oz1,295.10-2.6-0.52%
Silver Price, $/oz19.387-21.30.56%
Gold/Silver Ratio66.209-0.723-1.08%
Silver/Gold Ratio0.01510.00021.09%
Platinum Price1,437.50-5.70-0.39%
Palladium Price881.30-14.10-1.57%
S&P 5001,981.609.860.50%
Dow in GOLD $s269.522.691.01%
Dow in GOLD oz13.040.131.01%
Dow in SILVER oz863.24-0.72-0.08%
US Dollar Index81.930.310.38%

3 Day Gold Price Chart
30 Day Gold Price Chart
3 Day Silver Price Chart
30 Day Silver Price Chart
The GOLD PRICE dropped $2.60 (0.52%) to $1,295.10. Silver dropped 21.3 cents (0.56%) to 1938.7 cents today.

Nothing hit the gold price really hard. About 8:30 the US dollar, wino of fiat currencies, began to rise and about the same time the GOLD PRICE began to fall. It began the day poking as high as $1,303.70, but dropped and dropped until 1:00 p.m, down to $1,294.70. Closed a bare 40 cents above the low.

Well, it didn't close below $1,295, but it's only a hair above the uptrend line from the June low. Should gold break that line it would drop toward the uptrend line from the December low, which tomorrow stands at $1,270. Reversing upward requires a gold close above $1,325.

The SILVER PRICE barely crossed under that downtrend from the August 2013 high today, not really enough to call it a breakdown. Just below about 1925c stands lateral support, and beneath that 1860c.

Stepping back from the chart, the last 14 months seem to paint a bottom on both silver and gold, but the next couple of days could be as much fun as a self-directed tooth extraction with wire pliers and a hammer.

Durn! What in the world is wrong with me? Why can't I get with the 21st century? What can't I look at the news of markets hanging on Janet Yellum's next words at the meeting of Our Masters at (the appropriately- named) Jackson Hole and not feel that same warm enthusiasm that Winston Smith felt looking at Big Brother on the Telescreen? Why doesn't my heart melt with gratitude and why don't thankful tears run down my cheeks? Why do I continue in my stubborn, self-willed exile from the love of Big Brother?

I reckon because it's all too durned silly, and I'm too much of a hick to recognize Our Masters, let alone respect them. Besides, if they really were Masters of The Universe, as they were touted, wouldn't they look better and smarter than Janet Yellum and all the rest?

But look here at me! I hardly know how to scrape a hog, and here I am knocking my betters. I ought to be ashamed (but I ain't).

Stock market's on another tear. Dow rose 80.85 (0.48%) to 16,919.59 while the S&P added9.86 (0.5%) to 1,981.60. It's the best of all possible worlds. Apparently these indices aim to put in a double top somewhere near or slightly above where they've been before. Dow today closed barely above that uptrend line from the March 2009 low. Recall it had fallen through that back at July's farewell.

Stock strength and metal weakness today sent the Dow in Gold and Dow in silver soaring. Dow in silver rose 1.36% to 871.92 oz (S$1,127.33 silver dollars) and if it doesn't reverse soon will make a double top with the 1 June high at 892.99 (S$1,154.57). Rapidly approaching overbought on the RSI and full stochastic.

Dow in Gold ended the day higher by 0.65%$ at 13.05 oz (G$269.77 gold dollars). This corrects a little over 50% of the fall from 9 June to 7 August, so this chart looks altogether different to the Dow in Silver. The 61.8% correction level is above at 13.12 oz.

Buy the news, sell the rumor. We'll have to put up with this I reckon until Yellum speaks on Friday and nothing comes out of her mouth but hot air. Till then I just have to grin like a jackass eating sawbriars and bear it.

Another thing not helping gold is the US dollar. It rose 31 basis points (0.38%) today to 81.93, finally breaking free of that consolidation either side of 81.50. Target is 82.75 at least.

Euro today broke down from an even-sided triangle to make a new low for the move at $1.3321 (down 0.32%). Looks like the fun's just beginning for the Euro. Yen lost 0.33% to 97.18 and looks hopeless.

Bond and note prices have been rising, anticipating that Big Mother will be announce low interest rates long into the future. We are now watching interest rates retrace the upward progress they made during 2013. Shoot, maybe the law of gravity is all wrong. Maybe it ain't no law a-tall. Maybe Our Masters really are alchemists who can turn paper into gold.

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.