• Gold Price Jumped $11 or 1 Percent Closing at $1,128.10

    19-Aug-15 Price Change % Change
    Gold Price, $/oz 1,128.10 11.00 0.98%
    Silver Price, $/oz 15.18 0.39 2.63%
    Gold/Silver Ratio 74.334 -1.212 -1.60%
    Silver/Gold Ratio 0.0135 0.0002 1.63%
    Platinum Price 1,011.90 19.00 1.91%
    Palladium Price 609.35 12.85 2.15%
    S&P 500 2,079.61 -17.31 -0.83%
    Dow 17,348.73 -162.61 -0.93%
    Dow in GOLD $s 317.91 -6.14 -1.89%
    Dow in GOLD oz 15.38 -0.30 -1.89%
    Dow in SILVER oz 1,143.17 -41.07 -3.47%
    US Dollar Index 96.42 -0.65 -0.67%

    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

    Well, I called that one wrong. Silver and GOLD PRICES bounced up. Maybe I get some credit because the FOMC minutes scrambled everybody’s eggs.

    The GOLD PRICE jumped $11 (1%) to $1,128.10. The SILVER PRICE leapt 33.9 cents (2.6%) to $15.176.

    Today’s close marked a new high for the move and convincingly suggest that the price of gold has stepped out on another leg of its rally. Silver did not make a new high, but regained all of yesterday’s losses. Parked on its 50 DMA. Aftermarket was higher for silver, up to $15.35 and for the gold price, $1,134.50. Strong as a garlic milkshake.

    More strength confirmation came from Platinum, up $19 to $1,011.90 and palladium, up $12.85 to $609.35.

    I would feel more comfortable if silver also had closed at a new high. I would also be less likely to look for one more downmove. If tomorrow the gold price opens higher and silver does, too, then they’re off to the races. I still want to witness silver above $15.60.

    FOMC meetings were published and they said yes, they would definitely possibly maybe raise interest rates in September perhaps if employment remains employed and the moon signs are just right. Sounded like Alan Greenspan in one of his senior moments.

    I’m not even gonna try to figure out what it means and by what track of logic folks bought or sold, but stocks took it hard, I’ll tell you. Stocks were puking sick when the day began, down 150 within minutes of the open, sinking further, then trying to rally when the FOMC minutes were published, but crashing right back. Dow gave up 162.61 (0.93%) to 17,348.73, wiping out any gains from the last week. S&P500 lost 17.31 (0.83%) to 2079.61.

    Dow is back beneath an internal resistance/support line I’ve been watching, below its 200, 50, and 20 DMA (in that order, i.e., pointing down). S&P500 is about 2 points above its 200 DMA. Sick.

    I reckon that US dollar index had been kept a-floatin’ by all them folks fading the Fed, buying dollars expecting the Fed to announce an interest rate increase in September. I reckon they got their wings and toenails clipped today, and serves ’em right — anybody foolish enough to count on something a central banker says. It’s a fool looks for consistency in the heart of a central banker.

    Dollar index lost 65 basis points (0.67%) to 96.42, below its 20 and now its 50 day moving averages, and within spitting distance of the last low at 95.95. Wouldn’t take much to send it tumbling. Euro, on the other hand, gained 0.83% to $1.1120 and jumped over that downtrend line and its 20 and 50 DMAs. Crazy thing’s liable to rally. Yen added 0.39% to 80.71, which takes it, too, above its downtrend line.

    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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