|Gold Price, $/oz.||1,163.30||1,141.50||-21.80||-1.9|
|Silver Price, $/oz.||15.818||15.566||0.252||-1.6|
|Dow in Gold $ (DIG$)||313.58||319.88||6.29||2.0|
|Dow in gold ounces||15.17||15.47||0.30||2.0|
|Dow in Silver ounces||1,115.61||1,134.75||19.14||1.7|
|US dollar index||97.24||97.02||-0.22||-0.2|
|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|
On Comex today, where they take no prisoners and show no mercy, the GOLD PRICE fell $5.70 to $1,141.50 and silver gained 2.2 cents to $15.566.
The gold price traded down to its 50 DMA and stopped there today, having closed beneath its 20 DMA on Wednesday. A 62.8% correction of the foregoing move takes it to $1,137.10. Today's low came at $1,138.40.
The SILVER PRICE has hit the old support at $15.50-$15.60 and stopped. Silver is holding up better than gold, which makes me nervous because silver's Commitments of Traders look more negative than gold's. Will silver even the score with gold in one swoop?
On the other hand, a 50% correction of the October advance would be $15.365. Down below at $15.00 is the uptrend line from the August low.
For all the worrying, silver and gold prices remain in uptrends from the summer lows, and they had an excellent higher month. GOLD/SILVER RATIO remains where it ought to be if they are rallying, namely, below its 200 DMA in a downtrend.
What if the Nice Government Men and criminal central bankers, in order to hold at bay the due penalty of their monetary crimes and economic sins, worked together to manipulate interest rates? "Aww, you Tennessee fool! Don't you already know all them central bank knockers sit down to eat together once a month in Basel at the Bank for International Settlements? Whatta you think they talk about, the rubber chicken and cheap wine?"
No, I understand that, what I mean is that last week, not to put too fine a point on it, was the most luxuriant and pyrotechnic display of central bank jawboning and smoke-blowing we've seen since Draghi's famous we'll do "whatever it takes."
The end of the month was drawing close, and all good bureaucrats keep one eye on the calendar, because they are graded month to month. How to get stock prices up, especially before the FOMC meeting? The Chinese obliged by dropping interest rates on Thursday, Friday Draghi rattled his throat making noises about more QE coming in December, maybe, perhaps. Then the FOMC said they would definitely/maybe/probably/possibly raise rates in December.
I'd say it was a brilliant propaganda campaign, and succeeded in pushing up the Dow 7.9% and the S&P 8.1% on the month, and helped erase the memory of the searing pain and bleeding from the August plunge. No new bolts were turned, no screws tightened, no new houses or cities or refrigerators built, nothing was produced, no economic demand grew nor economic supply, yet it SEEMED as if it had, because stocks were suddenly more valuable.
'Twas all seeming, without being. But it worked.
And what if the US dollar index is being managed the same way. Draghi says to Yellen, "You let your currency rise this month, and we'll let ours rise next month." Dollar has traded in a roughly 5 point range, even with the August drop, since May. Nice round number, five.
Now the details.
Dow Industrials lost 92.26 (0.52%) today to 17,663.54. S&P500 gave back 10.05 (0.48%) to 2,079.36. Get clear in your mind: If they can pierce the bottom of that upturned bowl the central bank magicians have engineered an extension to the stock boom. If not, stocks will move lower than a rich deacon stealing out of the collection plate.
|Dow in Gold|
|Dow in Silver|
Dow in Silver rallied to a high of 1,140.02, but settled today at 1,137.02 oz. Also above the 200 DMA. Looks tired but hasn't confirm that by lying down and going to sleep.
The euro, the Frankencurrency, rose 0.26% to $1.1007, but who cares? Now below its 200 dma and couldn't buy credibility if it had its own central bank to issue money. Wait, wait. It does.
Yen is tanglefooted in its converging 20, 50, and 200 DMAs. Range-trading.
Y'all enjoy your weekend.
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.