Thursday, May 12, 2016

Price of Gold Closed at $1270.30 Down $4.30 or -0.34%

12-May-16PriceChange% Change
Gold Price, $/oz1,270.30-4.30-0.34%
Silver Price, $/oz17.09-0.22-1.24%
Gold/Silver Ratio74.3430.6750.92%
Silver/Gold Ratio0.0135-0.0001-0.91%
S&P 5001,064.11-0.35-0.03%
Dow in GOLD $s288.371.120.39%
Dow in GOLD oz13.950.050.39%
Dow in SILVER oz1,037.0713.431.31%
US Dollar Index

Whether the market is stocks or gold or goats, it's never a good sign when the market advances sharply one day, then gives it all back the next. As stocks yesterday, so gold and silver today.

Gold backed off $4.30 (0.34%) to close Comex at $1,270.30. Silver backslid 21.5¢ (1.24%) to 1708.7¢. 
To remain trending upward, gold needs to hold on around here, because it is above the 20 DMA ($1,263). Today leaves me anticipating another drop from Gold. Presently the lower range boundary is roughly $1,250, & it could easily slip to that. 

Silver lost virtually all of yesterday's gains, and lodged at this 1700¢-ish level we've seen so often. If silver breaks 1690¢ (really 1700¢), the blood will attack packs of sharks, and could drive it down to 1640¢. 
Don't throw your beer mugs at my head. I'm not running the train, I'm just a messenger boy trying to figure out the schedule. 

Did you ever look in the mirror in the head on that deep sea fishing boat everybody though it would be such fun to take, and see a very green-skinned person looking back at you? That's how puking sick stocks look. 

Dow managed to end 9.38 (0.05%) higher at 17,720.50, but only after spending much of the day underwater. Other indices all closed lower, like the S&P500, which dropped 0.35 (0.2%) to 2,064.11. No, no, those aren't BIG drops, but they have that hovering quality of a baseball at the top of its thrown arc, one micro-moment before turning down. 

US dollar index bounced back today, regaining 33 basis points (0.35%) of the 48 it lost yesterday and ending at 94.12. Look, 

This answereth no questions, solveth no riddles, disposeth no controversy. Dollar index has merely climbed to the top boundary of its falling downtrend. Yes, it's also above its 20 DMA (94.02). Without a close above 94.33 (last high), dollar index is merely wheel-spinning.  

Have to drive over to Chattanooga tonight to have my foot checked after surgery last Friday. Still not hurting, thank God. I will try to get back in time to send y'all a commentary tomorrow. 

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.