|Gold Price, $/oz||1,186.10||8.80||0.75%|
|Silver Price, $/oz||15.95||0.00||0.02%|
|Dow in GOLD $s||313.72||1.81||0.58%|
|Dow in GOLD oz||15.18||0.09||0.58%|
|Dow in SILVER oz||1,128.41||14.61||1.31%|
|US Dollar Index||94.60||-0.57||-0.60%|
|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|
Sellers at $16.00 and higher are stopping silver like a stone wall. It rose well overnight and by 8 a.m. reached $16.24. That's when the selling hit, which after a struggle until 10 a.m. drove silver back below $16.00. Same selling hit gold about the same time, but the buyers were more determined.
We are in the same still waters, becalmed. Yes, today was quite nice and made gold folks feel good and strain their triceps patting themselves on the back, but no milestone was crossed. The GOLD PRICE remains below its 50 and 20 moving averages, and the 200 day is up at $1,210.80. Till the gold price throws a leg over that fence at $1,200, nothing has happened.
Oh, there are little whispers. Volume rose the last three days on rising prices. RSI has hooked up, and MACD is trying to. Last Thursday the price of gold hit its 2-standard deviation bottom Bollinger Band and has since rallied. But until the gold price o'erleaps that $1,200 fence, nothing has happened.
The SILVER PRICE lies in much the same bed as gold, but without the signs of waking up. Minimum necessary life that must be shown is a close over $16.00, then $16.40, and I don't mean waiting a week to do it.
Silver always loses more than gold in a downward correction, and that pushes the GOLD/SILVER RATIO up. At 74.354 ounces of silver to one ounce of gold today, it has risen again above that uptrend line from the April 2011 low. Once again, this is no man's land. The ratio could rise up to 76.42 without signaling danger of a new and serious drop in silver and gold prices.
All the same, I bought a little gold today, and probably ought to have bought silver, too. If the Greek crisis is resolved without the European banks re-po'ing all the antiquities in Greece and their children, silver & gold may take a hit. Let's see what effect that S&P downgrade has on tomorrow's trading.
Today markets were loony as ever, and waxing loonier all the time. Stocks spiked up on news that the Germans had come to an agreement with the Greeks on how the Greek taxpayers are going to pay to bail out the German and European banks. That's what we're talking about, after all, since the banks own most of the Greek debt. That news goosed stocks (The millennium has arrived! 40 acres and a mule for everybody!). But Bonds tanked as investors dumped them, whether to ride stocks (nuts) or because the bond bubble is bursting is not clear. Gold rose modestly, silver remains comatose. US dollar index stumbled to a new low for the move.
However, about 30 minutes ago Standard and Poor rating service downgraded Greece's bond rating to junk status and said it's likely the country will default in a year if it can't make a deal with creditors. They waited until after markets closed to release that little tidbit.
Dow rose 236.36 (1.33%) to 18,000.40, just as barely above the morale-busting 18,000 mark as it could squeeze (makes me think of Nice Government Men). S&P500 rose 25.05 (1.38%) to 2,105.2.
I don't want to hurt anybody's itty feelings, but all that gigantical move did was take the S&P500 (but not the Dow) through its 50 dma. Last two days the S&P500 broke through and stayed under the bottom trading channel line from March. Industrials punched into but closed not above the 50DMA.
May rally and rally, even to a new high, but 'tis doomed.
US dollar index lost 57 basis points (0.6%) to 94.60, a new low for the move. Closed lower than the last low, and made a new intraday low. Will drop further, especially after today's news.
Oddly, the euro didn't suck much advantage out of the dollar's tumble. It rose 0.36% to $1.1322. Remains trapped beneath $1.1470.
Japanese yen rose 1.33% to 81.51c/Y100 (Y122.68=US$1). Gapped up like it was bending over and somebody hit it with hot jumper cables, clean to the 20 DMA.
Volatility: it's the gift of central banks for EVERY market.
10 year T-note yield hit its highest level since October, but also did something waaay more important: closed ABOVE the downtrend line from 2007. Has plainly broken out to the upside.
Remember prices run opposite to yields, so today's yield jump to 2.478% took the note's price down nearly to the bottom boundary of an uptrend line that goes back to end-2013. Bond bubble is threatening to explode.
30 year bond yield rose to 3.209 but threatens no technical line like the 10 year yield. However, the bond price is also below its 200 DMA (like the 10 year) and drawing near its 18 month uptrend line. Buzzards roostin' in the trees.
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.