|Price of Gold, $/oz||1,351.40||2.40||0.18%|
|Price of Silver, $/oz||20.47||0.15||0.75%|
|Dow in GOLD $s||281.53||-0.93||-0.33%|
|Dow in GOLD oz||13.62||-0.04||-0.33%|
|Dow in SILVER oz||899.32||-8.14||-0.90%|
|US Dollar Index||95.75||0.25||0.26%|
Markets are still hanging fire, floating on waves of indecision. That won't last.
Stocks keep eroding little by little. Dow Industrials average hit its 20 day moving average today, but managed to close above it at 18,404.51, down 27.73 (0.15%). S&P500 is some stronger, but it fell 2.76 (0.13%) to 2,170.84. 20 DMA doesn't lie far below at 2,152.30. MACD indicator for both has turned down. Expect gravity to control the direction of the next big move.
US dollar index rose 25 chiseling basis points (0.27%) to 95.75. That don't change a thing. Dollar index is dancing over its 50 DMA (95.59). If it falls through 95.50, next stop is 93 - 92.50.
Price of gold and silver advanced, but not decisively. Comes gold price rose $2.40 (0.2%) to $1,351.40. Silver price gained 15.3£ (0.8%) to 2046.5¢.
Charts show that 4 days ago both metals broke out of consolidations (flags) upward. Today both trod water. Yes, yes, the advances pleased you, but crossed no milestones. Silver price needs to break above 2100¢ and gold price above $1,377.50 to validate and extend gains already made.
Commitments of Traders show very heavy speculator participation. That is hot money, & hot money can get cold feet quickly. But with negative interest rates metastasizing around the globe, and now central banks threatening to throw out Helicopter Money to all & sundry, what will benefit more than silver & gold? Not bonds or stocks.
Gold/Silver ratio in July rallied to mid-month, but never could work up grit nor gumption to climb over the 20 DMA. Now the ratio has turned down again. This is a good sign for silver & gold.
Don't let the apparent calm fool you. Powerful forces are building behind that mask.
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.