|Gold Price, $/oz||1,089.90||-1.60||-0.15%|
|Silver Price, $/oz||14.11||0.23||1.63%|
|Dow in GOLD $s||303.77||0.97||0.32%|
|Dow in GOLD oz||14.69||0.05||0.32%|
|Dow in SILVER oz||1,135.08||-16.46||-1.43%|
|US Dollar Index||99.19||0.17||0.17%|
|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|
Shenanigans returned to the silver and gold price markets today after a flat day yesterday. In what I have to call an incomprehensible daily chart, the gold price gapped up a little after 3:00 a.m. Eastern from $1,089 to $1,092.5, traced out an island sideways, then gapped down from $1,092 to $1,087. After one more foray toward $1,082 before the US market opened, it turned up and steadily but gently rose the rest of the day.
THe SILVER PRICE did the same, only more so. It gapped up from $13.98 to $14.19 -- gapped, as in no trading between those numbers. Formed an island, then gapped down about 5:00 a.m. from $14.12 to $14.05, and crabbed upwards rest of the day.
Those big gaps should signal clusters of stop orders -- or something else. Silver and GOLD PRICES keep slamming from one side of the range to the other, but I take as positive silver's better performance than the gold price.
Surprising as it sounds, gold remains above its 20 and 50 DMAs and barely after $1,088 support/resistance. Silver daily keeps tapping on the ceiling above. Volume is rising, suggesting silver is gaining strength as it climbs.
Silver and gold prices still need to prove their upward intention with closes above $14.40 and $1,113. Frustrating as this range trading may be, it is constructing a base from which silver and gold can launch a rally. The wait shall not be prolonged.
If what stocks did today was called a "rally," some mighty bad juju lies in the future.
After reaching an early high of 16,171, the Dow sawed lower and lower until it hit a low of 15,900 about 3:00. Right about then, "friends" entered the market to buy, buy, buy and it ended up 27.94 (0.17%) at 16,016.02, squeaking above the 16,000 morale busting mark. Yeah, that's what happened, and the Nice Government Men on the Plunge Protection Team didn't have to lift an index finger or push a BUY button, the market just fixed itself.
After a like performance, the S&P500 ended up one (1.00) point at 1,881.33. (If y'all want to view daily charts of the major stock indices, go to nasdaq.com.)
Stocks locked in a third wave down I reckon. Fall will accelerate.
Dow in gold fishhooked up from a new low yesterday at 14.69 oz, and rose top 14.73 oz. Headed for deeps of the earth. Dow in silver fell 0.61% to 1,142.37 troy ounces. Now below the 200 DMA (1,148.29 oz). Nothing in those charts gainsays my conclusions that they double peaked in the summer and December. Picture in your mind Cassandra, wild look in her reddened eyes, tangled hair filling the air around her head, racing down Wall Street barefooted screaming, "The Dow in Gold and Dow in Silver warn of lower stock prices soon!" True to the curse that rests on her, she always prophesies the truth, yet none believe her.
US dollar still looks sickly. Rose 17 basis points today to 99.17, but that's right on the upper boundary of the even-sided triangle it has formed since the year opened. A close below 98.5 shatters the triangle downside, a close below 98 trumpets trouble for the buck.
Euro fell 0.5% to $1.0906, just as lazy and feckless as ever. Yen lost 0.56% today to 85.00, which sounds like a bad lick unless you know it made a new high close for the move yesterday at 85.47. Rise much more, and the yen rally gets out of hand. All the safe haven bid is flowing to the yen.
Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
© 2016, 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.