Thursday, October 09, 2014

The Gold Price Rose a Sizzling $19.30 Today to Close at $1,224.60

9-Oct-14PriceChange% Change
Gold Price, $/oz1,224.6019.301.63%
Silver Price, $/oz17.370.352.07%
Gold/Silver Ratio69.402-0.301-0.43%
Silver/Gold Ratio0.01440.00010.43%
Platinum Price1,277.8011.700.92%
Palladium Price799.654.650.58%
S&P 5001,928.21-40.68-2.07%
Dow in GOLD $s285.72-10.49-3.54%
Dow in GOLD oz13.82-0.51-3.54%
Dow in SILVER oz959.25-39.53-3.96%
US Dollar Index85.640.280.33%

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

The GOLD PRICE rose $19.30 (1.63%) from yesterday's Comex close to $1,224.60. Silver rose 2.07% or 35.2 cents to $17.367. Remember that in yesterday's aftermarket silver was at $17.45 and the gold price at $1,223.60, so neither made any real gains today. HOWEVER, do not pass in ignorance by this other fact: they held their gains.

Notice that silver is beginning to show moves over 2% a day, and gold over 1.5%. Sizzling.

The GOLD PRICE climbed yesterday above its 20 DMA and today punctured that first $1,224 resistance. High today came at $1,234, above the next resistance at $1,232.70, but gold couldn't hold on there.

The SILVER PRICE at its $17.72 high today punched through its $17.69 20 DMA, but fell back. Silver still has not penetrated its downtrend line from August, tomorrow about $17.47. That $17.50 is also lateral support/resistance. Everything is still pointing heavenward.

The GOLD/SILVER RATIO is one little question mark in my mind. After rising on 3 October to its peak, it gapped down, but has since traded back to fill the gap. Today it closed at 70.513. I would like to see it fall some, which would put silver outpacing gold a little, a component of nearly every precious metals rally. STILL TIME TO SWAP GOLD FOR SILVER.

The gold price has given us three days' higher closes after a key reversal. That confirms a rally, but was that low on 6 October THE low, the end of the 3 year correction. Durned if I know yet, but I suspect it is.

I know I'm just a nat'ral born durned fool from Tennessee, but I bought more gold today.

Well, lookee here now! I reckon them FOMC market meeting gooses to the stock market work about like feeding cotton candy to a kid at a fair. It looks gracious big, and it goes down easy, but it don't fill you up and might make you throw up.

Yesterday the stock market cheerleaders were crowing over the Dow's biggest one day gain of the year. Today I reckon they are pretty shy over the Dow's biggest one day LOSS of the year, back to back.

Dow tail-spun 334.97 (1.97%) to 16,659.25. Mercy, the S&P500 did worse, losing 40.68 (2.07%) to land with a thud at 1,928.21.

Today's fall brought the Dow within 100 points of its 200 day moving average (16,591.44, S&P500's is at 1905). No, Virginia, this is NOT the place from great which bounce- backs begin, this is the edge of the cliff that waterfalls pour over.

'Bout time y'all started thinking about protecting those stock market gains by liquidating and buying silver and gold.

Dow in Gold
More and more it looks like the Dow in Gold, Old Reliable, has pinpointed the top in stocks. The DiG has COLLAPSED from that 3 October high at G$295.19 gold dollars (14.28 oz), punched through its 20 DMA (G$288.79 or 13.97 oz) and lost 2.13% [sic] today to close at G$281.34 (13.61 oz). DiG now has edged to within striking distance of the 50 DMA (G$278.04 or 13.45 oz) and the 200 DMA (G$267.49 or 12.94 oz). Just to give you your bearings, the uptrend line from August 2011 today stands about G$219.12 (10.6 oz). Here is the chart on the right:

Dow in silver crashed through its20 DMA (S$1,244.95 silver dollars or 962.89 oz) and skidded to a stop down 1.89% atS$1,242.17 (960.74 oz). Captain Gravity has seized control of the ship. Chart is on the left:

US dollar index bounced up today 0.33% or 28 basis points to 85.64, but the low came at 85.01, below the 20 DMA (85.28). Keep an eye peeled on this correction, because it will forecast the dollar's future for the next year. A failure here means no more rally, a success a long rally.

The euro punched into its 20 DMA and fainted, falling back 0.33% to $1.2691. Yen added 0.29% to 92.75 cents /Y100. A rally has begun.

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.