• Price of Gold Fell $14.00 or 1.22 Percent Ending the Day at $1,132.00

    28-Sep-15 Price Change % Change
    Gold Price, $/oz 1,132.00 -14.00 -1.22%
    Silver Price, $/oz 14.54 -0.57 -3.76%
    Gold/Silver Ratio 77.865 2.001 2.64%
    Silver/Gold Ratio 0.0128 -0.0003 -2.57%
    Platinum Price 926.10 -25.10 -2.64%
    Palladium Price 651.25 -16.30 -2.44%
    S&P 500 1,881.77 -49.57 -2.57%
    Dow 16,001.89 -312.78 -1.92%
    Dow in GOLD $s 292.22 -2.07 -0.70%
    Dow in GOLD oz 14.14 -0.10 -0.70%
    Dow in SILVER oz 1,100.69 20.68 1.91%
    US Dollar Index 96.20 -0.23 -0.24%

    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 PRICE were walking down the street doing fine, arm in arm, about 3:00 a.m. New York time when somebody dropped a piano on their heads. Between then and 10:00, the gold price fell as low at 1,127.30 and silver to $14.60. Silver later reached $14.47.

    Gold Price

    On Comex the PRICE OF GOLD dropped $14 or 1.2% and closed $1,132.00. Silver lost a mouth-lolling 56.8 cents (3.8%) to $14.538. What happened? (I will forbear spinning an answer out of “conspiracy to suppress,” but that notion sure does pop quickly to mind.)

    The dollar index was actually falling at 3:00 a.m., but after 6:00 began rising to its high for the day about 9:00 a.m. After that it fell as straight as silver and gold prices, dropping to an 11:30 low at 95.90. Oddly enough, that big dollar drop doesn’t really damage the chart. It stopped above the 20 DMA, and it was, after all, at the downtrend line from the January high. Uptrend, however remains intact.

    Silver Price

    The SILVER PRICE doesn’t look as nice. Today’s big fall sliced through the 50 and 20 DMAs ($14.91 and $14.75), but stopped within the $14.25 – $14.95 range that has trapped silver since July. Believe it or not, silver has put in a series of higher highs and higher lows since the August low, and that still defines an uptrend. Today silver hit that uptrend line. Trouble for silver comes with a break below $14.25. Otherwise, it’s okay.

    Now step back from those charts and look. Both metals are coiling up in even-sided triangles, coiling for a breakout. Trouble is, and even-sided triangle doesn’t tell us which way they will break out, only that they will.

    You have to wonder what sort of lunacy the Federal Reserve is pursuing. They’re firing the blarney cannon till it’s glowing red hot. Yellen spoke last Thursday dribbling about raising interest rates later in the year, trying to re-capture the Fed’s lost credibility, I reckon. Today New York Fed Chairman Wm Dudley spoke in the morning, Chicago Chairman Charles Evans this afternoon, and this evening John Williams of the San Francisco Fed will speak. Nine more are scheduled for this week, including Yellen again. It’s a blarney blitzkrieg.

    I’m having trouble graspin’ what they are doing. At first I thought they might be trying to talk the dollar up, but if so it didn’t work today. Are they determined to tank stocks? Two out of three who spoke today leaned toward raising rates. Are they trying to talk the rate rise graveyard dead, so everybody will get so plumb dog-tired of hearing them natter and drool about it they’ll accept anything, just don’t torture us anymore driveling about interest rates!

    Well, I’m just a nat’ral born durn fool from Tennessee, and can’t imagine what them biggety central bankers might be thinking. But you know, you can sometimes overthink your enemy. I mean, you can puzzle and puzzle about what your enemy is plotting, and in the end he ain’t plotting a durned thing: he’s jes’ stupid as a ball-peen hammer. Course, it’s always unwise and perilous to assume your enemy’s stupid until you have eliminated all other possibilities. In the Fed’s case, that might be easy, though.

    Dow Jones

    Today’s markets:


    US dollar index, as I suspected, fell back through its 50 day moving average. Lost 23 basis points (0.24%) today to 96.20. This beating doesn’t satisfy me atall. I want to see it below 96 and the 20 DMA (now 95.81) again. Then if it sinks like a double-bitted axe in a cow pond, I won’t care a bit. Dollar index is presently pointed up, but tenuously and indifferently.

    Mercy, ain’t y’all glad you didn’t own stocks today! Dow fell 312.78 (1.92%) to 16,001.89, and it ’bout ruptured disks in the Nice Government Men’s backs to get it to close that 1.89 above 16,000. What WILL they do tomorrow?

    S&P500 fared worse than the Dow, vomiting up 49.57 (2.57%) to 1,881.77. It looks far sicker than the Dow. Below 1,867 panic take over.

    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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