Thursday, March 19, 2015

The Gold Price Closed Up $17.70 or 1.5 Percent at $1,169.10

19-Mar-15PriceChange% Change
Gold Price, $/oz1,169.1017.701.54%
Silver Price, $/oz16.100.573.69%
Gold/Silver Ratio72.624-1.540-2.08%
Silver/Gold Ratio0.01380.00032.12%
Platinum Price1,120.8027.202.49%
Palladium Price765.451.450.19%
S&P 5002,089.27-10.23-0.49%
Dow in GOLD $s317.55-2.78-0.87%
Dow in GOLD oz15.36-0.13-0.87%
Dow in SILVER oz1,115.61-33.63-2.93%
US Dollar Index99.580.800.81%

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 closed Comex up $17.70 (1.5%) at $1,169.10, but was about even with yesterday's late trading. In other words, it didn't really make any new headway today, but did hold its own against a dollar up 80 basis points.

Silver closed Comex up 3.75 or 57.3 cents at $16.098. That's about 3 cents higher than yesterday's aftermarket.

We need to view these metals' closes not from the perspective of where they closed on Comex yesterday but in the aftermarket. After all, Comex closed before the FOMC announcement caused everybody's scalp to blow off.

Gold Price
So when it's all said & done, what did we gain out of all the razzle-dazzle? The GOLD PRICE pushed up to its top trading channel line and near its 20 DMA. It is positioned to break out. You can see that on the chart on the right, All the indicators I regularly watch have turned up, arguing the next move will be toward the treetops. Yet remember, dear friends, the gold price overall trend is down so it must prove itself like an old convict on a new job. Must best that last high at $1,223, then the $1,308 high where it failed in January.

Daily chart shows that the gold price held with a V-bottom at $1,160, which was good. Sets the stage for a rise tomorrow.

Silver Price
SILVER PRICE 5 day chart just chirps good things. It corrected & made a low at $15.85, then climbed again like a Sherpa on Mt. Everest. On a longer term chart it did, in fact, break out & close above the upper boundary of that long-building falling wedge. I want to see a strong day with another 60 cent or more move and a close above $17.00. But that will require silver to come bursting out of that wedge tomorrow and closing the week with a big show. Chart on the left.

Gold/Silver Ratio
I somehow failed to refresh the GOLD/SILVER RATIO chart yesterday. Y'all need to take a look at it because it is SHOUTING a powerful message. Chart on Right.

It shows an upward breakout with this recent silver and gold price weakness, BUT the breakout FAILED. Now it has not only turned down but obligingly closed today well below its 20 & 50 day moving averages, turning momentum down. In fact, all indicators point down. That falling ratio whispers, "There's something y'all aren't seeing that intends to pull silver & gold higher." That's what a falling ratio means, higher silver & gold prices.

And by the way, PLATINUM PRICES and PALLADIUM PRICES recovered sharply yesterday, too.

Daily USD $
Before we leave the subject of weird charts distorted by central bank shenanigans, y'all go look at the US dollar index chart from yesterday. Looks like an EKG of somebody's heart stopping.

Friends, this ain't normal, none of it. Nature has better manners.

Dollar index was right active today, too. It opened above its 20 DMA (97.13) and climbed as high as 99.76. Ended up at 99.58, gaining a hefty 80 basis points (0.81%). All the same, for the present at least the FOMC's announcement yesterday broke the dollars climb.

Come to think of it, after what the Swiss Central Bank did to traders in January, and the Fed yesterday, I don't know why anybody would have nerve enough to trade currencies. 'Tain't that much fun.

If I was the euro I'd be checking to see if my burial insurance was paid up. It jumped up to close yesterday about $1.0800 and even touched its 20 DMA & the downtrend line, but today it is -- literally -- right back where it was before the party began. Lost 2.10% today & ended at $1.0639. That says to me that the market does NOT believe the euro is worth this high rate any more than it believes the dollar deserves its "low" rate. That's not what I believe, now, cause I believe that both of 'em ought to be hanged, drawn, and quartered & their body parts hung on the city gate to rot as a warning to others. The market, however, which has the attention span of alone fruit-fly in a roomful of rotten bananas, does believe the euro's too high & the dollar too low. (I have not yet decided yet but am pondering whether the central bankers ought to get the same treatment as their respective currencies.)

Yen fell 0.71% to 82.71, still near the bottom of that range it has habituated since December, from 82.2 to 86.3. Hardly any life there.

Stocks lost their mojo today. Watching today's stock market coming off yesterday's FOMC fix reminds me why I don't do heroin -- too hard coming down.

Dow gave back 117.16 (0.65%) to dip beneath 18,000 again: 17,959.03. S&P500 puked back 10.23 (0.49%) to 2,089.27. Today ain't fatal but it's none too inspiring, either.

Whooo-eee! Look at that Dow in Silver! Fell like a one-winged albatross from the top gator jaw through the 20 DMA. Ended at S$1,440.97 silver dollars (1,114.5 troy ounces), down 2.03% and below the 20 DMA at S$1,453.87 (1,124.48 oz).

Dow in Gold fell but not as sharply, only 1% to G$317.11 gold dollars (15.34 oz). Closed barely above the upper gator jaw, but promises to fall further tomorrow. Every day's like Christmas Eve, just waitin' for good things to come.

Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2015, 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.