• Gold Price Has Spent Three Days Above it's 200 Day Moving Average Up 2.4 Percent this Week

    9-Oct-15 16-Oct-15 Change % Change
    Gold Price, $/oz. 1,156.30 1,183.60 27.30 2.4
    Silver Price, $/oz. 15.809 16.102 0.293 1.9
    Gold/Silver Ratio 73.142 73.506 0.365 0.5
    Silver/gold ratio 0.0137 0.0136 -0.0001 -0.5
    Dow in Gold $ (DIG$) 305.43 300.68 -4.75 -1.6
    Dow in gold ounces 14.78 14.55 -0.23 -1.6
    Dow in Silver ounces 1,080.68 1,069.18 -11.50 -1.1
    Dow Industrials 17,084.49 17,215.97 131.48 0.8
    S&P500 2,014.89 2,033.11 18.22 0.9
    US dollar index 94.88 94.59 -0.29 -0.3
    Platinum Price 979.50 1,021.30 41.80 4.3
    Palladium Price 706.80 698.90 -7.90 -1.1

    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 GOLD PRICE edged off a little today, $4.30 (0.4%) to close Comex at $1,183.60. SILVER gave back the nickel it made yesterday and ended at $16.102.

    Gold Price

    Just think of the most important things. The GOLD PRICE has spent three days above its 200 DMA, and above the downtrend line from October 2012. It did this after breaking out of an even-sided triangle and left behind an October low $79.80 lower than it now stands. It has passed the last two highs. It is set up to plow through $1,190 and $1,205 resistance. Its momentum indicators all point up.

    What in the world are y’all complaining about? The gold price is getting ready to move HIGHER.

    Silver Price

    Now gaze upon SILVER, also floating above its 200 DMA like a fingernail moon in a black sky. Broken out above that summer trading range and that old support/resistance at $15.60. Busted clean free of an even-sided triangle as October began, and now stands $1.74 higher than it began October. I don’t particularly like the shape of that flag it has drawn, but that’s not fatal.

    If silver and GOLD PRICE can survive whatever attack comes Monday, y’all will see much higher prices this week. If not and they correct a little, that’s okay, too. Silver is targeting $17.86, the gold price $1,300.

    Bottom line: hair-pulling agony of the four year correction is behind us, best I can tell from what shows now. Stocks have turned down against gold and silver, which is the sign we were waiting for. US economy is going to get worse, and Janet Yellen will find herself wishing she had taken that job as Walmart greeter instead of moving to Washington. Whoops! Make that Dollar General. Walmart ain’t doing so good, Janet.

    “Boys, get out the paint! Get gallons of it, ’cause we’re gonna need it today! We gonna paint the tape!” So hollered the Boss of the Nice Government Men about 2:00 today. It was one boiling over crisis, Dow down for the day and the week! Flaming danger the suckers on Main Street might be awakened by the obvious. So they sprinted down to Wall Street, whole lot of ’em, and they commenced to painting. They had rollers and brushes and sprayers and they rolled and brushed and sprayed until finally that got that tape painted. Dow rose 74.22 (0.43%) to 17,215.97 and the S&P500 gained 9.25 (0.46%) at 2,033.11, and the country, yea, the nation we all love, the world as we know it, was saved from the Dow closing down for the week.

    Dow in Gold

    Great job, Nice Government Men! Y’all can go back to nappin’ now. Trouble is, y’all will have to do the same thing next week, and the week after, and . . . and one day y’all might run out of paint.

    Dow in Silver

    Dow in gold rose today to 14.62 oz, up 0.91%. Remains beneath the 200 day moving average with momentum dragging it down like concrete overshoes and logging chains on a defunct Mafia don swimming laps in the East River.

    Dow in silver closed up 1% at 1,073.98, and has collapsed worse than the Dow in Gold.

    US Dollar

    D’y’all notice the US dollar index fell for the week? It did. Today it rose, in step with stocks as has been its wont lately, 16 big basis points or 0.17%, to 94.59. ‘Tain’t much, not even up to the downtrend line, but for a scrofulous fiat currency that ain’t backed by anything but tanks and warships, ’tain’t bad.

    Euro fell 0.19% to $1.1358. Rotten thing has no more face than a whipped dog, just running for cover every time the dollar raises its finger. Ditto the yen, which has now given up all of it breakout upside this week. In a three way race with the Euro and Dollar for “Sorriest Fiat Currency in the Universe.”

    Just a word about those inflation markets, oil and copper. After breaking out of a pennant and trading up to its 200 DMA, WTIC traded down to its 20 day moving average, caught, and turned up today. That suggests but doesn’t prove that the August low was THE low. Copper is still riding on a double bottom August/September. Floating up toward its 200 DMA.

    Y’all enjoy your weekend.

    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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