|Gold Price, $/oz||1,244.40||14.30||1.16%|
|Silver Price, $/oz||15.52||-0.09||-0.57%|
|Dow in GOLD $s||286.21||-3.06||-1.06%|
|Dow in GOLD oz||13.85||-0.15||-1.06%|
|Dow in SILVER oz||1,110.27||7.35||0.67%|
|US Dollar Index||96.67||0.44||0.46%|
Well, this week the whole world will be in suspense under the evil Eye of Sauron hovering above Mordor on the Potomac, waiting for the Fed orcs to announce how they will next torture the economy & common sense. That happens Wednesday, so until then markets will be holding their breath. After all, Sauron (an acrostic for c-e-n-t-r-a-l-b-a-n-k) sees all & knows all & fixes all, doesn't he?
Wildest surprise (and most suicidal) that might come from the Fed is a rise in interest rates. Otherwise 'twill be all puff & blow, threatening big stuff for later. Some time.
Meanwhile SILVER and GOLD began that correction I have been looking for. The GOLD PRICE closed at $1,244.4, down $14.30 or 1.14%. In the aftermarket it dipped to $1,229.90, but later recovered to $1,234-ish. On Comex silver lost 8.9¢ to 1551.8¢, a mere 0.6%.
Gold closed below the lower boundary of that bearish flag we've been watching, & projects a drop to $1,195.5 to $1,167. If it remains as peppery as it has been, look for that upper target. Volume did NOT rise on this fall, which suggests gravity has not much force behind it.
Silver ought to make a lower low that the 1461¢ on 29 February. Most logical to me seems 1440¢ area, where silver broke out of that bowl. However, interpreting the pattern as a cup & handle says that silver shouldn't drop below 1485¢.
Don't bother throwing crockery at my head. I just report what I see, I don't fabricate, pervaricate, or masticate. Res ipsa loquitur.
US dollar index rose 44 basis points (0.45%) to 96.67. This is no stupor mundi. High today came same place as Friday's, 96.74, and stopped, although it closed higher. After the ECB debacle last week, traders will be right shy of loading up on dollars or any other currency, so little should happen before that Fed bloviation on Wednesday.
Stocks are flat. Dow rose 15.82 (0.09%) to 17,229.13 while the S&P500 backed off 2.55 (0.13%) to 2,019.64. Waiting for Sauron to speak.
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. 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.