|Gold Price, $/oz||1,180.50||-4.80||-0.40%|
|Silver Price, $/oz||15.96||-0.12||-0.73%|
|Dow in GOLD $s||313.53||3.25||1.05%|
|Dow in GOLD oz||15.17||0.16||1.05%|
|Dow in SILVER oz||1,121.98||15.28||1.38%|
|US Dollar Index||95.28||0.17||0.18%|
|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|
Both silver and GOLD PRICES were lethargic today, as if they'd been drugged. Somebody slipped 'em some thorazine. The price of gold has a little uptrend running the last eight days, but what can you say when it gets near its 20 day moving average ($1,188.05) and faints?
Yet daily falling toward gold from above is its 200 day moving average, now at $1,208.77. Either the gold price must show life, strength, and heart by kicking through that barrier, or it will fall away like Superman shunning kryptonite. MACD has nearly turned up, and rate of change has pointed up and is now almost positive. Tain't much recommendation, except the very disfavor of it and the low volatility. Like the girl at the dance who sits by the wall, when she finally gets a chance she's gonna hit that dance floor and cut some kind of rug.
After that little pop yesterday, silver wilted today. It has established new support at $15.77, so mustn't breaks that or it runs the danger of a much larger drop. Premium on US 90% remains at $1.75 over melt at wholesale, smokin' hot, but silver price hasn't shown it yet.
The silver and gold price need to show some signs of life, at least fog up a mirror under the nose. Gold needs to hop over its 50 DMA ($1,194.08) and $1,200 while silver needs to o'erleap $16.50.
Don't shoot the messenger, folks. I'm just reporting what the charts say.
My hogwash meter's needle has pegged over into the red -- so great is the radiation from the massive hogwash bomb headed our way tomorrow in the Federal Open Market Committee meeting announcement. I'd just about rather eat a bug than have to put up with it. Everything about it offends the fastidious sensibilities of a rational man, not to mention morality, logic, and good grammar.
Expecting (I suppose) good things from the FOMC tomorrow, that is, no interest rate hike, US stocks rose today after losing 248 points in the last two sessions. The Dow gained 113.31 (0.64%) today and ended at 17,904.48. S&P500 also rose, adding 11.86 (0.57%) to close 2,096.29. The volatility has to be killing somebody.
The peak in New York Stock Exchange Margin debt tends to lead stock price peaks, but the data runs a month late. In 2000 margin debt peaked in March and the stock market peaked in March; in 2007, margin debt topped in July but stocks in October.
March and April 2015 margin debt posted two new highs, but May hasn't been published yet. Higher margin debt in May would argue stocks have more rise before them.
US dollar index rose 17 basis points (0.17%) to 95.28, while US treasury security prices rose slightly. Thos events point to an uneasy edging to quality in light of the breakdown of talks to resolve the Greek sovereign debt crisis. Friend in Greece reports that Greeks keep the least minimums possible in bank accounts. Wonder why? Too, I wonder why y'all leave big balances in banks. Just as soon take a big old rattler into my bosom to warm up as trust banks and governments.
Euro lost 0.31% to $1.1245. Moving no more than that whispers that the market does not expect Greece to default or exit the euro. German and French stocks (DAX and CAC) made the first half of a key reversal upward today, that is, they broke to a new low for the move, but closed the day higher. London's FTSE just made a new low for the move.
Yen inched up 0.05% to 81.05. It will probably move higher before it moves lower.
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.