|Gold Price, $/oz||1,102.80||-4.90||-0.44%|
|Silver Price, $/oz||14.32||-0.04||-0.26%|
|Dow in GOLD $s||311.16||5.70||1.87%|
|Dow in GOLD oz||15.05||0.28||1.87%|
|Dow in SILVER oz||1,159.29||19.01||1.67%|
|US Dollar Index||95.76||0.35||0.37%|
|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|
GOLD PRICES little drop did not carry it through the uptrend line from the July low, so I'm satisfied. Bound to be muted when the FOMC pronunciamento loometh overhead.
Silver during the day punched into its lower support line, but at the end of the day closed slap on it.
Well, it looks like Mama Janet Yellen and the rest of them educated fools on the FOMC (Stands for Fools Orchestrating Monetary Chaos) are fixin' tomorrow to hit a hornet's nest with a short stick. I'm not sure even that lot is plumb stupid enough to raise interest rates, but you'd go broke quick betting against the stupidity of academics. If they raise that rate, they'll kill the stock market graveyard dead. Course, they'll kill the economy graveyard dead if they don't. They're just like a fool playing with a two-headed snake, they don't know which side he'll bite 'em on, but he'll bite 'em, sure enough.
Markets are dead as a road-killed possum, waiting for our silly would-be Masters of the Universe to pronounce their decision. Nothings moving except stocks and the dollar, and they are betting on no raise. Dow took on 228.89 (1.40%) to end at 16,599.85. Hot dog! Closed above the 20 DMA, but not above the top of the pennant. In plain English, ain't done nothing but burn up buying power. S&P500 rose 25.06 (1.28%) to 1,978.09. Today is probably about as good as it gets for stocks, living on hope. But whether they tumble tomorrow or next week, the top is behind us while the abyss yawns before.
Speculators are betting the FOMC will raise rates (I'm guessing) and so the dollar index rose 35 basis points (0.36%) to 95.76. That peeks the dollar's head above the 20 Dma (95.64) but leaves the downtrend untouched.
I read a clever article yesterday listing all the reasons the Fed shouldn't raise interest rates. One of the most eyecatching was that a rise will raise the dollar's value and set off a stampede out of other currencies, and other bond and stock markets, into the dollar in a self-reinforcing cycle driving the dollar higher and higher. Which head of that snake did you say you wanted to bite you?
In Treasuries, on the other hand, the 10 year note's yield jumped up 4.63%, which means the note price fell, which suggests speculators in treasuries expect the Fed will raise rates and drive bond prices down. Or maybe they think the faeries are going to start issuing bonds. People are so durned crazy today you can't front run 'em.
I won't presume to guess which way the Fed will flop. I will only observe that it won't impress the economy and the stock market as much as a tuxedo impresses a Rhode Island red rooster. Whatever they do, besides closing their doors and keeping their dadburn academic fatfingers off the economy, they will only make things worse.
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.