|Gold Price, $/oz||1,216.80||1.50||0.12%|
|Silver Price, $/oz||17.70||-0.08||-0.46%|
|Dow in GOLD $s||291.74||-2.18||-0.74%|
|Dow in GOLD oz||14.11||-0.11||-0.74%|
|Dow in SILVER oz||970.26||-1.55||-0.16%|
|US Dollar Index||84.79||-0.07||-0.08%|
|3 Day Gold Price Chart|
|30 Day Gold Price Chart|
|5 Year Gold Price Chart|
|3 Day Silver Price Chart|
|30 Day Silver Price Chart|
|5 Year Silver Price Chart|
Gold's range was $1,208.80 to $1,221. Silver ranged from $17.33 to $17.86. GOLD/SILVER RATIO ended at 68.750:1.
The SILVER PRICE has started another and predictable waterfall after it broke $18.60 support. It is badly oversold, but rising volume hints it hasn't stopped yet.
The GOLD PRICE remains above its June 2013 and December 2013 $1,180 lows, unlike silver. Yet there is no sign, other than its severely oversold condition, that it has turned up or won't drop to that $1,180 level. The big long positions in the Commitments of Traders has been worked off, and that's a first harbinger they may turn.
One other little cloud on the horizon: silver put in what might have been a V-bottom on the daily chart. Happened in the night between Sunday and Monday US time.
In spite of the negative charts I can't get over the impression we are watching a peak in stocks and the dollar and low in silver and gold prices, although it may take until next week to work out. It will happen fast.
Back in early July 2013 the US dollar index hit a high of 84.96, and was nothing like as bloatedly overbought as it is today. It's high today was 84.97, so that resistance threw it back for the time being. US dollar index dropped seven basis points or 0.8%.
Today the Criminal-in-Charge at the European central bank, Mario "Bags under the Eyes" Draghi testified before a EU parliamentary committee. He complained that the European economy is slowing down, which fuels speculation that the ECB will soon metastasize into a bond buying program like the US Fed's Quantitative Easing.
Anyhow, the Euro took heart and lifted 0.26% to $1.2849. MACD is trying to turn up.
Also as excruciatingly oversold as the euro, the Japanese Yen rose 0.2% to 91.89. In this waterfall there are two breakaway gaps and what appears to be an exhaustion gap three days ago. All that argues for at least a temporary turnaround.
US Ten Year treasury note yield fell today for the second day, down to 2.547%. It bounced off the 200 DMA three days ago.
The Dow gave back 107.06 (0.62%) today to land at 17,172.68. The S&P500 felt even worse, and coughed up 16.11 (0.8%) to end below 2000 at 1,994.29.
S&P500 closed below its 20 day moving average (1,998.80), although the Dow didn't quite drop that far. Both have put in that rocket nose cone sort of top, where a single high day is sandwiched between days below but of more or less the same range. Nasdaq, N-100, Russell 2000 all look the same, but closed further below their 20 DMAs today. Looking a mite peakéd.
Dow in gold hooked sharply down to 14.10 oz (G$291.47 gold dollars), down 0.7%.. Is the move completed? It needs to close below the 20 DMA at 13.65 oz (G$282.17) to give a first signal. RSI shows the DiG at an overbought level only seen in the last four years, most of those in the rally since 2011 -- but this is overboughter still.
Even though silver dropped a little today, stocks dropped more. Dow in Silver hooked down 0.53% to 966.17 oz. (S$1,249.19 silver dollars). The 20 DMA awaits below at 905.12. Dow in Silver is also at its most overbought level in 15 years, with few exceptions.
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.