Monday, June 08, 2015

The Gold Price Added $5.40 Closing on the Comex at $1,173.20

8-Jun-15PriceChange% Change
Gold Price, $/oz1,173.205.400.46%
Silver Price, $/oz15.95-0.02-0.13%
Gold/Silver Ratio73.5500.4300.59%
Silver/Gold Ratio0.0136-0.0001-0.58%
Platinum Price1,100.509.200.84%
Palladium Price743.10-7.30-0.97%
S&P 5002,079.28-13.55-0.65%
Dow in GOLD $s313.05-2.92-0.92%
Dow in GOLD oz15.14-0.14-0.92%
Dow in SILVER oz1,113.82-3.80-0.34%
US Dollar Index95.21-1.15-1.19%

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 added $5.40 to $1,173.20. SILVER lost 2 cents today to $15.951. Disagreement amounts to confusion.

In the past two days both silver and GOLD PRICES have bumped against their lower 2-standard deviation Bollinger Band. Naught says they can't keep on skidding down that line, but often they turn and stage at least a little oversold bounce from there.

When I am reduced to saying stuff like, "Well, even though it dropped today the volume didn't rise," I know silver and gold prices are in a hard place. I see people calling for silver at $10 and the price of gold at $850, and others calling for huge rallies right here before the world ends in tee-tiny shards. What's a nat'ral born durn fool to think? I hadn't even worked out shoelaces yet, what do I make of all this grand imaginin' and specurlashun?

Not a thaing. I only know that the seasonal silver and gold price charts call for a relative low at the end of June, which could mean anytime from the mid-June to mid-July. And I see stocks crumbling and the US dollar apparently minded to visit some deep place in the earth. And the mess in Greece could blow up taking the euro with it and sending the dollar up, and US interest rates are already rising in anticipation of our Wise Fed Masters raising rates. It's enough to make a fool dizzy, but I can guess with the best of 'em.

My guess is silver and gold prices will erode into the end of June, but without making new lows, then begin the long climb back to the sky. Now y'all have my opinion. Y'all can take that and a new, crisp $2 bill and buy yourself a cup of coffee -- or a scratch and sniff lottery ticket.

At the G-7 meeting some French reporter claimed that Barack Obama had said something about the US dollar as a "problem." The Great Prevaricator speedily denied the comment, but it threw the US dollar index into turmoil. Lesson to be drawn -- and underlined -- from that is markets are SPOOKY. That must be very hot money to raise and drop markets so fast. That suggests that a world of hurt looms somewhere in the future, when the rumor cannot be denied.

US dollar index lost a massive 115 basis points (1.19%) to 95.21. Just refreshing y'all on the recent past, the DX fell 160 basis points on 2 June, another 51 on 3 June, then on Friday, 5 June rose 87 bps. In markets where 50 basis point moves are big, these represent HUGE volatility, which in turn mirrors huge instability and uncertainty in currencies.

The dollar now stands firmly below its 50 and 200 day moving averages. Lower prices are coming.

Euro gained 1.7% to $1.1289. Still not the sort of chart you dream of owning, but at least it's above its 20 DMA, although miles away from its 200 DMA at $1.1829. Yen pulled back from annihilation to climb 0.88% to 80.36c/Y100 (US$1=Y124.44) Scabby thing's at its lowest price since 2002. What can anybody say? Spit, and say "Fiat!"

Oooooo. Today's one of those days I'm glad I don't own stocks. Both the Dow and the S&P500 closed below support lines, and of course they're trading below their moving averages. Dow started out below its recent (last 2 months) trading channel boundary and kept dropping all day, 82.91 (0.46%) to 17,766.55. The 200 DMA stands at 17,612. Early May's low at 17,738 lies near. More important is March's 17,579 low. Finally, the December/January twin lows at 17,067 and 17,037 are the place where the panic button is plugged in.

S&P500 pierced a bottom trading channel in place since March, losing 13.55 (0.65%) to 2,079.28. Canary in the coal mine is the last low, 2068. Below that a close under 2,039 will encourage group-pukes in wastebaskets, more since the 200 DMA is at 2,046.

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.