• Price of Gold Broke Support Around $1,125 and Tumbled $11.60 Closing at $1,115.50

    31-Aug-15 30-Sep-15 Change % Change
    Gold Price, $/oz. 1,131.60 1,115.50 -16.10 -1.4
    Silver Price, $/oz. 14.577 14.513 0.064 -0.4
    Gold/Silver Ratio 77.629 76.862 -0.767 -1.0
    Silver/gold ratio 0.0129 0.0130 0.0001 1.0
    Dow in Gold $ (DIG$) 301.93 301.78 -0.15 -0.1
    Dow in gold ounces 14.61 14.60 -0.01 -0.1
    Dow in Silver ounces 1,133.84 1,122.08 -11.77 -1.0
    Dow Industrials 16,528.03 16,284.70 -243.33 -1.5
    S&P500 1,972.18 1,920.03 -52.15 -2.6
    US dollar index 95.80 96.48 0.68 0.7
    Platinum Price 1,010.10 907.20 -102.90 -10.2
    Palladium Price 601.55 651.00 49.45 8.2

    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

    The PRICE OF GOLD broke support around $1,125 and tumbled $11.60 (1.03%) to $1,115.50. Silver dropped only 5.6 cents (0.4%) to 1451.3 cents.

    Gold Price
    Silver Price

    The PRICE OF GOLD traded in a tiny tight range just under $1,125, until 10:00 when it broke $1,120 and slid to a low at $1,110. Rest of the day slept. On the longer term chart, this brings gold to rest near the lower triangle boundary.

    SILVER PRICE chart today is quite strange. It range-traded from $14.70 to $14.60 until a little before 10:00 a.m., when it dropped down to $14.50. But about 11:30 it went crazy and jumped straight up to $14.75, and just as quickly fell again below $14.60. Rest of the day flatlined, except for one more attempt to break down at 14.50, which silver fought off. On the longer term chart silver lodged right on the lower boundary of that even-sided triangle. Must hold there.

    Nothing for it but to wait patiently. Large plunge still stands across stocks’ future.

    PAINTING THE TAPE: I saw the headline and immediately understood why stocks had to rise today: “Wall Street ends worst quarter in four years with a rally.” The Nice Government Men have been of course, unable to stem the tidal wave smashing stocks, but they could paint the tape just a little to make it seem better somehow — and to suck in more of the Main Street rubes in to their financial destruction.

    It’s okay. Those cheap tricks work at the margin, for a day, then they fade. King Canute never could command the sea to turn back. Neither can the NGM.

    I thought it might instruct us to see how everything did over the last month. Silver barely moved, gold lost 1.45, but the Dow lost 243.33 or 1.5% while the S&P500 lost 52.15 or 2.6%. US dollar index gained 68 basis points or 0.7%. Platinum took a beating, down 10.2%, but palladium jumped up 8.2%.

    Stocks today, as noted, rallied. Dow rose 235.37 or 1.47% to 16,284.70. S&P500 rose 35.94 (1.91%) to 1,920.03. On a chart this less than impressive performance doesn’t even reach the 20 DMA, but for both it is a confirmed key reversal, so we will probably see higher stock prices tomorrow. I reckon the Big Fellers still had some stock they wanted to fob off on the turnipseeds.

    US dollar index rose 49 basis points (0.51%) to 96.48. It is jumping back and forth over its 50 day moving average (96.32), but today was merely a lower high in a series of lower highs, i.e., more downtrend. Still following stocks day by day.

    I am interested to note that WTIC (Light Crude Oil) has risen the past two days. It’s in a long pennant which cold be a consolidation, but could also be a continuation. Copper Jumped 3.7% today and looks like it’s made a double bottom. Wonder why these inflation markets would be trying to turn up?

    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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