|Gold Price, $/oz||1,222.50||-5.90||-0.48%|
|Silver Price, $/oz||15.05||-0.06||-0.41%|
|Dow in GOLD $s||299.57||3.34||1.13%|
|Dow in GOLD oz||14.49||0.16||1.13%|
|Dow in SILVER oz||1,176.99||12.29||1.05%|
|US Dollar Index||94.46||-0.17||-0.18%|
Federal Reserve published FOMC minutes today & after the market read the guts of the rats (much like the ancient Roman haruspex would read the guts of a sheep or cow to tell the future, but not as edifying) it decided it was good news & the Fed wouldn't raise rates any time soon. Dow rose 112.73 (0.64%) to 17,716.05. S&P500 added 21.49 or 1.05% for a 2,066.66 close.
Changes nothing in the technical picture. Lower high with lower low. Defines a downtrend. Shortly, shortly the wailing & tooth-gnashing will pierce the skies over Wall Street.
US dollar index, also thanks to FOMC minutes, stumbled 17 basis points (0.18%) to end at 94.46. Minutely that puts the dollar index below the downtrend line from March 2015. Too minute to count as a breakdown. Important point in any event, point below which the dollar index must not fall, is 92.50.
Yen today shot up 0.51% to 91.11. Rallying. Euro lost 0.11% to $1.1397.
Gold lost $5.90 to close Comex at $1,222.50. Silver eased back 6.2¢ to 1505.2¢. Gold/silver ratio at Comex close was 81.218:1.
I am unrepentant: I would still swap gold for silver at this high ratio, targeting a fall below 32:1 within the next three years.
Look at a different gold chart, this one: http://schrts.co/RngcC9
Gold has traded in a range (bounded by the blue lines) since the July 2013 low and the August 2013 high. This February's breakout took told through that upper boundary. Now gold has come back ot the line for a final kiss good-bye. That explains its stubbornness holding on above $1,220. It would look an awfully lot better for gold not to break that line. Awfully.
Remember that uptrend line from the January low and the 50 day moving average are practically running together right now.
Laggard silver has little to say to us, except that it continues to hold on above its 200 DMA (now 1489¢). A drop to 1460¢ remains possible.
I am looking for this correction to end by this Friday or the next, latest.
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.