• Today the Gold Price Rose $2.50 to $1,188.10

    28-May-15 Price Change % Change
    Gold Price, $/oz 1,188.10 2.20 0.19%
    Silver Price, $/oz 16.65 0.01 0.09%
    Gold/Silver Ratio 71.345 0.043 0.06%
    Silver/Gold Ratio 0.0140 -0.0000 -0.06%
    Platinum Price 1,116.80 -2.70 -0.24%
    Palladium Price 784.80 -0.20 -0.03%
    S&P 500 2,120.79 -2.69 -0.13%
    Dow 18,126.12 -36.87 -0.20%
    Dow in GOLD $s 315.38 -1.31 -0.41%
    Dow in GOLD oz 15.26 -0.06 -0.41%
    Dow in SILVER oz 1,088.46 -3.85 -0.35%
    US Dollar Index 97.15 -0.32 -0.33%

    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

    SILVER and GOLD PRICES formed even sided triangles from November forward, then broke out of those triangles upward in Mid May. Both have since traded back to the top triangle boundary, typical “final kiss good-bye after a breakout.”

    I think the price of gold will hold here. At least, until it breaks through $1,175 and silver $16.55. I have to stick with that.

    If I am wrong, they will trade down at least to the bottom triangle boundary ($1,150 and $16.00). Who knows? If they break that line they could fall further.

    Today the GOLD PRICE rose $2.50 to $1,188.10 and the SILVER PRICE rose 2.5 cents to $16.653.

    These piddling moves announce nothing, except the silver and gold price refusal to drop. (As I said above, using so lavishly many words).

    Today settled nothing, explained nothing.

    I laid before y’all yesterday my bumfuzzlement over the state of the US dollar index and silver and gold prices. I hear analysts who I’m sure have forgotten more than I’ll ever know calling for lower metals’ prices, but here’s what I see:

    Stocks continue to roll over. Dow today lost 36.87 (0.2%) to 18,126.12 while the S&P shaved off 2.69 (0.13%) to 2,120.79. Stocks are acting more and more manic depressive, high one day, low the next, but without any net gain. Keep your eye on that net gain. When a car keeps spinning its wheels in the mud, eventually it mires down and sinks.

    The US dollar index rallied 10 months, from last July into this May, and a lot who rode that camel expected it to run forever. Didn’t. Dropped dead at 100.27 in May. Of course, that’s what investors and even sophisticated ones do, they project whatever trend runs currently out into the future forever, world without end.

    Dollar index dropped to 93.15 by Mid-May, forming a falling wedge on the way. Broke out of that upwards on 19 May, then surged straight up (not coincidentally, the fast move characteristic of a bear market rally when shorts get caught), rallied up to the 61.8% retracement level, 97.88, then stopped. Yesterday it fell back 3 basis points, today 32 to 97.15. If this were only a corrective rally in a longer downtrend, that’s how it would act. However, if it turns around and surges through 97.88, it will rise through the old high. My guess is that most of this dollar enthusiasm is being fueled by euro DIS-enthusiasm because of Greece. When that evaporates, the dollar will resume falling.

    I can’t be dogmatic about any of this, because the smoke still fills the air and I need confirmation.

    Okay, now y’all know everything I know. All these markets are waiting for something to break, something to erupt, to bust through their uneasy equilibrium.

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

    – Franklin Sanders, The Moneychanger

    © 2015, 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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