• Gold Price Stumbled $18.40 or 1.49 Percent to $1,219.80

      0 comments
    19-Feb-16 26-Feb-16 Change % Change
    Gold Price, $/oz. 1,230.40 1,219.80 -10.60 -0.9
    Silver Price, $/oz. 15.368 14.689 0.679 -4.4
    Gold/Silver Ratio 80.062 83.042 2.979 3.7
    Silver/gold ratio 0.0125 0.0120 -0.0004 -3.6
    Dow in Gold $ (DIG$) 275.40 282.00 6.60 2.4
    Dow in gold ounces 13.32 13.64 0.32 2.4
    Dow in Silver ounces 1,066.63 1,132.82 66.19 6.2
    Dow Industrials 16,391.99 16,639.97 247.98 1.5
    S&P500 1,917.78 1,948.05 30.27 1.6
    US dollar index 96.65 98.10 1.45 1.5
    Platinum Price 944.60 914.50 -30.10 -3.2
    Palladium Price 499.25 482.10 -17.15 -3.4

    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

    It was a hard week for the little things. SILVER and GOLD PRICES were badly battered today. Stocks dipped today but held on to a weekly gain. US dollar index surprised all by coming alive today and springing up 1.5% for the week. Silver and gold prices took the beating today they’ve been wincing for all week, but it’s better than okay. Clears the road for next advance. Platinum and palladium both got hammered, down over 3%.

    Owch. The SILVER PRICE tumbled 48.1¢ (3.2%) to $14.689. The gold price stumbled $18.40 (1.49%) to $1,219.80.

    9 Month Silver Price

    A letter I got from a reader today left me wondering if I have given y’all a misapprehension about my expectations. I firmly believe that gold and silver’s long correction bottomed with the December 2015 lows. However, after that huge breakout burst on 11 February, a correction became likely. That’s what I’ve been looking for all week, and it materialized today.

    Why is a correction good news? Because it will clear the way for the next rally.

    Gold Price

    Silver fell out of an even-sided triangle and clean through its 200 DMA ($15.05). IF (if) it does not stop around here, it could reach the 50 DMA at $14.47 or lower. Volume today dried up, so this retreat shouldn’t last much longer. Also, the top of that bowl that silver broke out of stands at $14.40. That ought to support silver. Here’s a 9-month chart on the right:

    Gold/Silver Ratio

    The GOLD PRICE fell to the nether boundary of that bear flag. That pattern usually breaks out earthward. Target is $1,180, maybe lower on a scare-spike. This will not drag on for long. Y’all should take EVERY retreat as an opportunity to buy silver and gold at a price that will leave you bragging to your grandbabies. Gold chart on the left:

    Never say never with markets. GOLD/SILVER RATIO pushed through the range’s top boundary today and ended Comex at 83.042. Owch. If not an anomaly, I don’t want to imagine what it might mean. Way, way overbought, so you’d expect it to fall next week. That implies the gold price would drop and catch up to silver. GREAT time to swap gold for silver. Call us at (931) 766-6066. Here’s a ratio chart on the right.

    US Dollar

    Now to the dollar, ugly duckling turned into ugly duck. Good news in lying government reports today goosed it 81 basis points (0.84%) to 98.10. Noteworthy here is a close above 97.50 resistance but not quite above the 98.14 50-DMA — a line which might mark the limit of the dollar’s advance. Still, odds favor higher dollar next week, probably riding optimism bleeding out of stocks.

    Euro nailed its own coffin shut today, closing below the lower range boundary that has contained most trading since last June. Lost 0.8% to $1.0937. Yen has unarguably broken its uptrend, taking much pressure off the Japanese Nice Government Men. Sank 0.85% to 87.72.

    West Texas Intermediate Crude Oil

    West Texas Intermediate Crude can’t pierce $34.50 resistance — yet. Fell back 0.91% to $32.78. Trying to bottom, but so weakly. Copper didn’t care and rose 1.73 to $2.11. No change here until it scales $2.15.

    Not much joy in Stockville today. ‘Twas a day of steady loss, dwindling, dwindling through the day. Dow gave up 57.32 (0.34%) to 16,639.97. S&P500 lost 0.19% (3.65) to1,948.05. That puts the Dow above resistance (16,600 and the 50 DMA at 15,686) and the S&P500 stalled — just over the 1,944 50 DMA but feet still tangled in 1950 resistance.

    Both can still rise a tad, but not much — not more than 17,000 and 2,000. This may take another two weeks to unroll.

    Dow in Gold

    In the Dow measured in metals, the upward correction we anticipated is working itself out. Dow in gold keeps vibrating up and down over the uptrend line from the 2011 low, and today bumped into the 20 DMA (13.65 troy ounces). Rose 0.74% to end at 13.63 troy ounces. Might stretch for the 50 DMA, now at 14.75 oz, before it exhausts.

    Dow in Silver

    Dow in silver reacheth for the 200 DMA (1,146.45 tr. Oz). 200 and 50 DMA are about to run together. DiS lifted 2.72% today to 1,132.82 troy ounces. After the fall we have seen since the December peak, this is nothing unusual.

    Don’t miss the point: back of stocks’ rally against metals that began in September 2011 has been BROKEN. Trend change to DOWN. For the next several years, silver and gold prices will gain value against stocks (stocks will become cheaper in silver and gold terms).

    On 25 February 1863 the yankee congress passed the National Banking Act, part of the Lincoln government’s attempt to float its bonds for an unpopular war. This was the embryo of a central bank in the US, another of Lincoln’s crimes.

    Susan’s eye is growing better day by day. Thanks again for your prayers.

    Y’all enjoy your weekend.

    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.

  • Gold Price Lost 50 Cents to End at $1,238.20

      0 comments
    25-Feb-16 Price Change % Change
    Gold Price, $/oz 1,238.20 -0.50 -0.04%
    Silver Price, $/oz 15.17 -0.13 -0.83%
    Gold/Silver Ratio 81.649 0.645 0.80%
    Silver/Gold Ratio 0.0122 -0.0001 -0.79%
    Platinum Price 926.10 -17.30 -1.83%
    Palladium Price 483.60 -3.90 -0.80%
    S&P 500 1,951.70 21.90 1.13%
    Dow 16,697.29 42.30 0.25%
    Dow in GOLD $s 278.76 0.82 0.29%
    Dow in GOLD oz 13.49 0.04 0.29%
    Dow in SILVER oz 1,101.04 11.91 1.09%
    US Dollar Index 97.39 -0.13 -0.13%

    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

    Comex raised GOLD PRICE futures margins today from $4,675 initial and $4,250 maintenance to $4,950 and $4,500. This is usual as the gold price rises.

    SILVER ebbed 12.7¢ to $15.165 on Comex. The GOLD PRICE lost — wait for it! — fifty cents to end at $1,238.20.

    This picture is all fuzzy. Wind must have blown down my antenna. Can’t quite get silver and gold prices to focus in sharply.

    Gold Price

    After its $9 collapse in yesterday’s aftermarket, the price of gold rose to $1,244.40 at today’s high, made a slightly lower low ($1221.80 against $1,222.40), then ended the day virtually unchanged. It altered the appearance of that pennant into a possible Bearish Flag instead. Behold the chart on the right. All this whispers darkly of lower prices. More, the Comex closing GOLD/SILVER RATIO rose today to 81.649, bumping the trading channel’s top boundary. That strongly implies that the gold price will drop relative to silver.

    Silver Price

    But Thunderation! Look at the SILVER PRICE, It bumped its 200 DMA today, exactly at the same location as the 20 DMA ($15.06 and $15.07) and has formed an even-sided triangle which could just as easily resolve skyward as earthward. I am torn because I wanted to buy more silver somewhere under 1510¢ and missed it today when it hit 1503¢. I’m not acting coy, the pros and cons are just too evenly balanced.

    Commitments of Traders for silver are lousy, so that’s against it.

    Here’s where I hang. Gold closing above $1,264 would drag gold substantially higher, say, to $1,300 – $1,395. Otherwise look for one more scary leg down that cracks $1,200 and plunges swiftly to $1,180/$1,170 then snaps right back. For now that’s the clearest picture I can get., although I’ve ’bout twisted the knobs off.

    A MARK OF THEIR DESPERATION: Illinois’ state budget and pension fund crisis is the worst in the US, save for California. From a friend who lives across the border in Indiana comes this mark of their desperation. The utility company cut off electricity to the Illinois State Police outposts for failure to pay the bill. My friend also drives an agricultural truck through Illinois and says they are setting up roadside scales, stopping every truck, and ticketing and fining if loads are even 100 lb. over limit. Clearly they are desperate for revenue.

    But hark! This is only the first buzzard of spring. Most states have budget shortfalls, and many have pension schemes waiting for bankruptcy, they just haven’t declared it yet. Hide and watch. Big POP a-comin’.

    Behold! The US dollar index reached 97.5 resistance, twice poked its head above, then wilted like Swiss chard in hot olive oil. Today it fell back 13 basis points (0.13%) to 97.39. Maybe the 20 DMA at 97.22 can catch it. It’s pounding into the uptrend line, trying to fall through.

    Euro remains a mere reactionary shadow of the US dollar. Rose 0.1% to $1.1025. Yen’s rally broke today with a gap that left behind what resembles an island reversal. Dropped 0.63% to 88.58¢/Y100 (Y112.89/US$).

    Stocks peeked over resistance at 16,600 and 1950 plus their 50 day moving averages.

    Dow languished most of the day little above unchanged, but at that regular 1:00 hour “friends” began buying and raised the Dow from 16,516 to 16,697.29, up 212.3 (1.29%) at close. S&P500 differed not much, rising 1.13% (21.9 points) to 1,951.70. These closes rose a gnat’s eyebrow about the 50 DMAs (16,600 and 1,945.50). Now let’s see how far stocks can rise against that headwind of resistance. I have no opinion because I wouldn’t buy stocks if I had gummint money to do it, so I have no dog in this fight. Know, however, sure as cats have kittens that stocks will shed value this year like a dog with dermodectic mange sheds fur. Consider the Shanghai stock exchange with an already advanced case of mange. Lost 6.4% today.

    Susan’s eye has it’s little problems, but is getting better. We’re thankful for every little betterment.

    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.

  • Price of Gold Closed Up $16.40 or 1.32 Percent at $1,238.70

      0 comments
    24-Feb-16 Price Change % Change
    Gold Price, $/oz 1,238.70 -16.40 -1.31%
    Silver Price, $/oz 15.29 0.06 0.37%
    Gold/Silver Ratio 81.003 -1.380 -1.67%
    Silver/Gold Ratio 0.0123 0.0002 1.70%
    Platinum Price 943.40 0.70 0.07%
    Palladium Price 487.50 -12.75 -2.55%
    S&P 500 1,929.80 8.53 0.44%
    Dow 16,484.78 53.21 0.32%
    Dow in GOLD $s 275.10 4.47 1.65%
    Dow in GOLD oz 13.31 0.22 1.65%
    Dow in SILVER oz 1,078.00 -0.54 -0.05%
    US Dollar Index 97.50 0.01 0.01%

    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

    On Comex the PRICE OF GOLD closed up $16.40 (1.32%) at $1,238.70. In the aftermarket, though, it dropped about $9.00 to $1,229.60. Why? No clear reason.

    Gold Price

    Chart on the right, y’all will see the bullish flag or pennant I mentioned yesterday. Today the PRICE OF GOLD broke strongly UP out of that pennant. Great — break to a new high for the move, except that later it dropped clean back, giving up much of the day’s gains. After a rise into new ground, that leaves me sore as a rented mule. ‘Tain’t right.

    Gold/Silver Ratio

    Add to that the GOLD/SILVER RATIO at a new high, 81.003. Think of that as a giant cast iron lid coming down on a dutch oven, pressing that chicken (gold price) down into that pot. It also stands right at the top channel boundary line. This situation shall not last long. Chart on the left.

    One other thing: today’s high leaves that pennant looking more like a “bearish flag” than a pennant, and as its name whispers, a bearish flag usually resolves downward.

    No question SILVER PRICE did begin a key reversal on an End of Day chart, even though it rose 5.7¢ (0.4%) on Comex to $15.292. Rose into new high ground only to close lower. On strongly higher volume, so it’s likely to persist that direction.

    Unless the gold price can close above $1,264, it faces another leg down and soon. Silver’s acting like a sea anchor, pulling the gold price back. Don’t let any drops, even large ones, scare you off. That’s your opportunity to load the boat!

    I appeared on a new show today, David Simpson’s True Money. It was a lively and enjoyable 45 minutes. You can listen to it at http://bit.ly/21h6f4x and it should be available today. If not, ’twill be tomorrow. Look for True Money Episode XI. I didn’t know anything about the Veritas Radio Network, but now I’m intrigued by the little bit I do know.

    All’s Right In The World. Sure. Wells Fargo bank set aside $1.2bn for potential losses on oil and gas loans today. On 17 February JPMorgan set aside $500mn for its potential croppers. JPMorgan Chase is the largest (by total assets) bank in the US. Wells Fargo is the fourth largest. Mama, trouble in the oil patch means double trouble in the bank patch.

    Stocks didn’t tell us a durned thing today. Dow gained 53.21 (0.32%) to 16,484.78 while the S&P500 rose 8.53 (0.44%) to 1929.80. Both remained ABOVE the 20 day moving average, but BELOW and whipped by overhead resistance (16,600 and the 50 DMA for Dow and 1,950 and 50 DMA for S&P500). If I could tear the top label off that chart so I didn’t know what it was, I’d still say, “I have no more desire to own that than to own a 3-legged dog that can’t bark.”

    Dollar index pushed higher, but remains mired in the mud at 97.50, where today it closed. Don’t like 97.50 a-tall. Euro lost 0.08 to $1.1010, going nowhere slow. Yen hit a new high for the move at 89.25, up 0.4%.

    Whoa! Another day of improvement for Susan’s eye. Most hearty thanks for all your prayers.

    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.

  • Gold Price Gained $12.80 or 1.06 Percent Today Closing at $1,222.30

      0 comments
    23-Feb-16 Price Change % Change
    Gold Price, $/oz 1,222.30 12.80 1.06%
    Silver Price, $/oz 15.24 0.06 0.37%
    Gold/Silver Ratio 80.230 0.547 0.69%
    Silver/Gold Ratio 0.0125 -0.0001 -0.68%
    Platinum Price 942.70 15.90 1.72%
    Palladium Price 500.25 1.40 0.28%
    S&P 500 1,921.27 -24.23 -1.25%
    Dow 16,431.78 -188.88 -1.14%
    Dow in GOLD $s 277.90 -6.17 -2.17%
    Dow in GOLD oz 13.44 -0.30 -2.17%
    Dow in SILVER oz 1,078.55 -16.42 -1.50%
    US Dollar Index 97.46 0.07 0.07%

    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

    Aren’t yesterday’s comments about my expectations of SILVER and GOLD PRICES retreating, I need to make something clear. I do not read palms, or tea leaves, or crystal balls. If you and I disagree on the market’s direction any particular day, there’s a 50% chance I’ll be right and a 50% chance you’ll be right. Day by day, there’s a 50% chance a market will rise, 50% it will fall.

    And as much as I rail on Wall Street pimps for stocks, I don’t want to become merely a pimp for silver and gold prices. I try to tell you what I see in charts. My deep-seated bias, however, is for silver and gold, so I’ll usually put the best read possible on it. I WANT y’all to buy silver and gold, and not merely because I sell it. Studying 4,500 years of history and monetary law, I know how this latest episode of fiat money will end, after over 100 years defrauding the public. The dollar and its system will evaporate, after destroying the fortunes of millions of honest people.

    True to their everlasting ability to make me look like no more’n a nat’ral born durn fool from Tennessee, silver and GOLD PRICES rose yesterday against my expecting them to stumble. As I said, there’s a 50/50 chance every day.

    Here’s another interpretation of silver and gold charts: a bullish flag. That is, the sideways pennant or flag that the price of gold has painted in the last 7 trading days is a bullish flag. And since the rule is that “flags always fly at half mast,” you could expect gold to jump another $193 (distance from $1,071 – $1,264) from its low at $1,202.50, or $1,395.50, give or take a dime. I think that’s less likely than a downward correction first, but these chart patterns don’t come with a label that predicts the outcome.

    Come on, Moneychanger, which is it, up or down? Durned if I know. Since I want to be buying silver and gold here anyway, I’m not too worried about buying and watching it drop $30 – $40. I would buy it if it closes above $1,264 because that would signal a breakout, or I would buy it if it drops below $1,200. and I wouldn’t think twice about it either way.

    Nearer that US dollar gets to the green-glowing Kryptonite of its 20 and 50 DMAs (93.38 and 98.14), the slower it moves. Jumped 77 basis points yesterday, but only seven today, to close at 97.46. Sort of like a teenager taking his date out for a ride in his new car, only to blow a head gasket on the way. Embarrassing.

    Euro did nothing, down 0.1% at 1.1037, but the Yen jumped 0.7% to 89.21. Those Japanese Nice Government Men have a warty problem. Yen’s rallying.

    Stocks hit their 50 DMA, mired down hard, and stomped on reverse. Dow peeled off 1.14% (188.88 points) to 16,431.78. S&P skidded 1.25% (24.23 points) to 1,921.27. Those 50 DMAs also lie right atop resistance at 16,500-16,600 and 1,950. Yesterday might have marked the end of stock’s upward correction. Dwindling volume since the 11 February low whisper loudly, “Weak as jailhouse Kool-Aid.”

    Your prayers for my wife are graciously answered, as Susan tells me her eye is 90% of normal today with far less pain. Thank you.

    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.

  • Price of Gold Lost 1.7 Percent Today Closing at $1,209.50

      0 comments
    22-Feb-16 Price Change % Change
    Gold Price, $/oz 1,209.50 -20.90 -1.70%
    Silver Price, $/oz 15.18 -0.19 -1.23%
    Gold/Silver Ratio 79.682 -0.380 -0.47%
    Silver/Gold Ratio 0.0125 0.0001 0.48%
    Platinum Price 926.80 -17.80 -1.88%
    Palladium Price 498.85 -0.40 -0.08%
    S&P 500 1,945.50 27.72 1.45%
    Dow 16,620.66 228.67 1.40%
    Dow in GOLD $s 284.07 8.67 3.15%
    Dow in GOLD oz 13.74 0.42 3.15%
    Dow in SILVER oz 1,094.98 28.35 2.66%
    US Dollar Index 97.37 0.77 0.80%

    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

    Enough volatility in the PRICE OF GOLD today to rattle a medieval hangman. The gold price plunged $20.90 (1.7%) and silver backed off 18.9¢ (1.23%) to $15.179. That didn’t surprise y’all, did it? Y’all knew another leg down was possible, right?

    The PRICE OF GOLD shows resistance/support at $1,180. A dip to that level will provoke mass puking in wastebaskets and squeeze victory shrieks out of Wall Street pimps. Ignore both and if you haven’t already loaded up on gold, back up the truck and fill up the bed, clean to the gunwales. ANY gold bought below $1,300 will look like the work of a genius time 2016 draws to its close, let alone later years. Notice I am NOT foretelling the gold price will reach $1,180, only noting that it will fall further and IF it fell to that number, it would panic even the comatose. Like pruning apple trees, the purge is needed for the growth.

    The SILVER PRICE cut into its 200 DMA ($15.08) today and touched its 20 DMA ($14.95) but closed higher, at $15.179. Silver keeps on lagging, so time silver purchases off gold. When the price of gold hits your target below, that’s the trigger to buy silver. $14.50 is possible.

    Surprise, surprise! Obama’s White House, reporting through a cloud of funny-smelling smoke, announced today in its Economic Report of the President that the US economy is jes’ fine, jes’ fine, with unemployment falling and wages rising. This is a conclusion only a government or fed economist could reach, with labor force participation still at 1978 levels. Sure, unemployment is down, because folks have dropped out of the labor force and given up on ever finding a job. But everything’s still hunky-dory, if that dirty congress will jes’ pass more job-killers like Obamacare and the Trans-Pacific Partnership, and reform criminal justice and train everybody to use a computer. The USA will one day have the most well-trained and educated jobless computer-jockeys in the whole wide world.

    The US dollar index, an index of the exchange rate of the ridiculous simulacrum we use as money, rose 77 basis points today (0.79%) to end the day at 97.37. This makes the same sense as falling the same amount, since the US dollar has no intrinsic or convertible value in any event. Truly ranks as the greatest fraud and con game in world history.

    Having explained what a US dollar — more accurately, FERN or Federal Reserve note — I note that it has reached but not overcome the 20 day moving average (97.47). Nothing persuasive happens for the dollar until it closes above 98.15, the 50 DMA. Till then it is locked in a downtrend, and even then will only have begun to whisper that it will rally.

    Euro remains the mirror image of the Dollar index. It fell 0.9% to $1.1029. No doubt some of that fall arose from British Prime Minister David Cameron’s jockeying over the weekend to secure Britain a better deal in the EU before a British referendum on leaving it. Be ware the stakes: the EU will crumple speedily should Britain leave. That will collapse a VERY long chain of dominoes.

    Yen retreated 0.22% to 88.64. Still stronger than its competitors, if “strong” is a word that can every be used in the same sentence with the name of any fiat currency.

    A pox on all of ’em, with chiggers thrown in for good measure!

    Stocks rallied strongly, continuing the handlocked trio movement they’ve been showing with the Dollar index and oil (or those have been showing with stocks). Dow augmented 1.4% (228.67 points) to 16,620.66, nor lagged the S&P500 behind, gaining 1.45% (27.72) to 1,945.50. This brings them up to resistance, and to their 50 DMAs, likely targets for failure. I won’t be much surprised either by a Niagara Falls from here, or a shot up toward 17,200 (2,000). Either way, the ultimate outcome will remain the same, much lower stock prices the rest of the year, and for years to come. Hide and watch.

    Dow in Gold

    Higher stocks and lower silver and gold today took down the Dow in Gold and Dow in Silver, as we have been expecting. Dow in gold closed at 13.73 troy oz, just cracking above the uptrend line from the 2011 low and probably doomed to stop somewhere between the 20 DMA (13.82 oz) and the 50 DMA (14.97 oz), most likely 14.75 oz.

    Dow in Silver

    Dow in silver is just dogging Dow in Gold’s footsteps. Rose 2.54% today to 1,094.62 oz, just above the 20 DMA (1,084.21) and of course above that post-2011 trend line. Nothing cosmic, here, just standardupward correction.

    West Texas Intermediate Crude oil rose stoutly, up 12.35% to $33.39/barrel, gapping up through its 20 DMA on the way. It stopped at resistance about $34.50 – 33.50. Copper also jumped 1.68% to close at $2.13, but must clear $2.15 to take itself out of Rodney Dangerfield’s class.

    My dear wife Susan had a good day with her eye today, a real improvement. Thanks again for your patient prayers 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.