|Gold Price, $/oz||1,161.10||2.20||0.19%|
|Silver Price, $/oz||15.62||-0.00||-0.01%|
|Dow in GOLD $s||314.28||0.13||0.04%|
|Dow in GOLD oz||15.20||0.01||0.04%|
|Dow in SILVER oz||1,130.36||2.74||0.24%|
|US Dollar Index||87.83||-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|
The metals' breaks below 15 month support levels has, on one hand, wrecked the picture technically. On the other hand, it means that the end of the correction draweth nigh -- but how nigh?
US dollar today lost 7 basis points but the daily chart was flat. As long as the dollar and stocks are rising hand in hand, silver and gold will remain red-headed stepchildren. Chart says the US dollar index could rise to 89, maybe to 92. A rising dollar alone is not necessarily strychnine for gold and silver, not if stocks break, but if the Dow breaks through here, why, we're looking at another 6-8 months or more of this misery.
Silver and GOLD PRICES today moved sideways in a narrow range. To break out the first step for gold is a close above $1,180, and for the SILVER PRICE it's $16.00. Short of that, they're just marking time for another fall.
Don't shoot the messenger, I'm just reporting what I see.
This has been an awfully sleepy week, which always leaves me suspicious and flinching.. Stocks have ground to higher highs the way you'd grind corn with quern-stone, little by little. Dow reached a new high today at 17,652.79, up another 40.59 or 0.23%. However, the S&P500 stalled and rose only 1.08 (0.05%) to 2,039.33.
Any time now.
I note in passing that one may draw an uptrend line from the April 2009 low in the Dow that riseth until this day. On 22 September the Dow broke down through that line and dropped like your grade average after you picked up beer drinking in college. Last three days it has been bumping up against that line. Markets frequently break out, move, then trade back to the breakout line for one last kiss good-bye.
Analogous break in the S&P500 came 13 October, but it only traded below that line six days. S&P500 is now bumping against another overhead resistance line.
MACD and Stochastics are at highest levels seen during this bull move. I don't know - maybe it can go on forever.
Dow in gold and Dow in silver are vibrating up and down in tiny zigzags. After their parabolic moves up, they look like they are quivering to begin what always happens after a parabolic up move: a concrete-block drop. DiG today rose 0.23% to 15.19 oz or G$314.00 gold dollars. Dow in Silver rose 0.23%, too, to 1,128.33 oz or $1,458.85. Both have thrown-over resistance lines above, so are ripe for a fall.
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.