• All Systems are Go for Silver and Gold Prices

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    4-Feb-16 Price Change % Change
    Gold Price, $/oz 1,157.60 16.30 1.43%
    Silver Price, $/oz 14.84 0.12 0.79%
    Gold/Silver Ratio 78.026 0.492 0.64%
    Silver/Gold Ratio 0.0128 -0.0001 -0.63%
    Platinum Price 904.40 25.60 2.91%
    Palladium Price 516.85 0.00 0.00%
    S&P 500 1,915.45 2.92 0.15%
    Dow 16,416.58 79.92 0.49%
    Dow in GOLD $s 293.16 -2.74 -0.93%
    Dow in GOLD oz 14.18 -0.13 -0.93%
    Dow in SILVER oz 1,106.54 -3.29 -0.30%
    US Dollar Index 96.56 -0.74 -0.76%

    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

    At Comex close the SILVER PRICE had added 11.6¢ (0.8%) to $14.836. The GOLD PRICE gobbled up $16.30 (1.4%) for a $1,157.60 close.

    Markets are very jumpy, all of ’em. At 10 a.m. Eastern time the gold price gapped from $1,150 to $1,155, a gap I find no explanation for. Gapped again from $1,155 to $1,157 about 2:45. Silver gapped, too, but not as strongly. First jumped from $14.85 to $14.90, second from $14.88 to $14.90. Nervous, very nervous.

    Gold Price

    The GOLD PRICE appears headed for $1,192, the last (October) high. That’s a first and minimum target. I’m reining myself in, not getting too excited because I expect lots of up and down this year as silver and gold prices build a base for the next big advance. The price of gold still needs to cross $1,162, three percent above the $1,128 breakout, for proof. Passing that old $1,192 high will sooth my nerves, too, because the gold price has punched through its 200 DMA before, several times in the last twelve months, without following through. Here’s an 11-month chart, strong lately as a garlic milkshake.

    Silver Price

    Silver ain’t nearly as pert and lively as gold, and that sits as a burr under my saddle. Also, volume for silver and gold dropped way, way off today. Need more buyers to fuel a rally. Gold has pierced its 200 DMA, now silver needs to follow suit and push through $15.13. High today was $14.95, fifteen cents away.

    Platinum

    Platinum and palladium are confirming silver and gold’s rise. Platinum’s 8-month chart on the right, boasts a bullish falling wedge that began in July. Platinum broke out upside in January, touched back to the breakout point (upper wedge boundary), then soared. Today it rose another $25.60 to $904.40, over $900 again. Has added over $50 in last 2 days.

    Palladium

    Palladium’s chart isn’t as juicy, It also shows a falling wedge with a bare minimal breakout. Palladium needs to confirm by moving from today’s $516.80 close above its 50 DMA at $527.

    Other inflation markets are also rising. WTIC oil rose nearly 2% to $33.38, but needs to cross $34.82 to prove a reversal, even short term. Copper rose 1.525 to $1.23, and has climbed back into the channel it fell from in January. Also completing a widening wedge that usually resolves skyward.

    All systems are go for silver and gold prices, I am just watching on the porch, looking for more rally confirmations.

    US Dollar

    Most eye-catching about that big US dollar index drop yesterday is that no special trigger set it off, only several minor news events that took it to the channel boundary and then through and for a panic dive. Likely triggered by spreading realization the Fed can’t raise interest rates with every other major central bank going negative — in spite of Fed jawboning to the contrary. If the Fed continues raising rates now, they will dislocate every joint in the US economy.

    Dollar index kept on cascading today, tumbling another 74 basis points (0.76%) over the rocks to 96.56. That teaseth the 96.50 support/resistance, plus plunges the Dollar Index below its 200 day moving average, and not by a little: 200 now stands at 96.90. Second day of decline implies the Nice Government Men are holding back, i.e., this may be a deliberate move by the Fed.

    A falling dollar is, of course, the best fuel for a gold and silver rally, so this nat’ral born durned fool from Tennessee is not complaining.

    Thanks to all y’all who prayed for Susan. She has improved today but her eye is still hurting. For Miss High Pain Tolerance to say that, it must be smarting, but she is some kind of brave. Thanks in advance for continuing to pray for her.

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 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.

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