• Gold Price Soared 1.5 Percent Closing on the Comex at $1,066.20

    11-Dec-15 18-Dec-15 Change % Change
    Gold Price, $/oz. 1,076.90 1,066.20 -10.70 -1.0
    Silver Price, $/oz. 13.859 14.08 0.221 1.6
    Gold/Silver Ratio 77.704 75.724 -1.980 -2.5
    Silver/gold ratio 0.0129 0.0132 0.0003 2.6
    Dow in Gold $ (DIG$) 331.42 332.03 0.62 0.2
    Dow in gold ounces 16.03 16.06 0.03 0.2
    Dow in Silver ounces 1,245.78 1,216.30 -29.48 -2.4
    Dow Industrials 17,265.21 17,125.45 -139.76 -0.8
    S&P500 2,012.37 2,005.41 -6.96 -0.3
    US dollar index 97.55 98.72 1.17 1.2
    Platinum Price 843.50 860.60 17.10 2.0
    Palladium Price 543.95 558.30 14.35 2.6

    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

    With a vengeance today SILVER and GOLD PRICES soared out of yesterday’s pit. Silver added 39.7 cents (2.9%) to end at $14.08 on Comex. The gold price added $15.40 (1.5%) to $1,066.20.

    Before I say anything, hold it against this context: to confirm any rally intent, gold must throw a leg over $1,080 then step out smartly. Likewise silver is simply spewing cheap talk at any price below $14.40. Both must give some positive confirmation of a turnaround or they will continue to slide.

    Having said that, can I dredge up something hopeful? Well, yes. Silver and gold have both formed nearly 3 year falling wedges, a formation that usually breaks out upward. MACD indicator for both points up. Both have completed about two-thirds of patterns that MIGHT be upside-down head and shoulders.

    Palladium Price

    Dredging deeper, Palladium seems to have double bottomed with lows at 520 (August) and 522.55 (December). Platinum may have finally found its feet at $825. At least both ended the week higher, which was some improvement.

    So silver and GOLD PRICES show some hopeful signs, but no definitive turnaround. My suspicion that we have been watching bottoming since November remains a suspicion without enough evidence for an indictment. All I have going for me is the Fed’s perpetual, in-bred, suicidal inflationary stupidity, the bond markets starting to tank, and a stock market crash around the corner. In light of all that, who’d want to own silver or gold?

    Only a Tennessee fool like me, I reckon.

    Stocks’ shame this week was not how low they fell, but how high they rose before they fell. Hurricane coming. US dollar index rose, but on wicked volatility and unreason. Fed’s plans to raise interest rates by raising its puny discount rate reckoned not with the market. There’s the sea, O King Canute, command it to recede! At week’s end, metals spake with Babel’s voices: silver, platinum, and palladium higher while the price of gold fell. The mystery grows.

    I am so glad I’m just a nat’ral born durned fool from Tennessee and not one of the Masters/Mistresses of the Universe at the Fed. I ain’t nothin’ so don’t have to pretend nothin’, and if it turns out I ever do somethin’, well, I move up, not down. When you’re sittin’ atop the universe, ain’t no way to move but down.

    US Dollar

    This week’s Fern (Federal Reserve Note) trading inspireth this meditation. Reason loudly crieth that the Fed raising its discount rate ought to raise the US dollar index. Rather, when the Fed announced higher rates, the dollar index dropped. Then shot up 144 basis points next day, and backed off 60 bps today to 98.72. Today’s close even took the dollar index below the 20 day moving average (DMA). Well, it’s still broken out upwards through the short term downtrend line. That implies ’twill move higher. Of course, the dollar moving higher holds no good promise for silver and gold prices.

    Euro rose 0.3 to $1.0865 but remains below the old bottom range boundary that it fell out of in November. Yen, on the contrary, climbed above the analogous bottom range boundary. Rose 0.97% to 82.44 today.

    Barclays High Yield Bonds
    West Texas Light Crude Oil

    Meanwhile the fecklessness of the Fed’s Masters of the Universe is showing shamefully in the 10 year treasury note yield. It’s been dropping since the FOMC meeting, down 1.74% today to 2.199%. Junk bonds have broken down badly, and although they tried to rally today, ’twas only death throes. Y’all will find a similar chart in Crude Oil, so forecast your own future.

    West Texas Intermediate Crude fell today 0.78% to $35.85, but that’s above the last low on 14 December. WTIC hath twice punched into its support line, but last time (August) rallied off that low. It is awfully slow to follow through in obedience to gravity, but assumption says it will eventually. Needs a close above $42.50 to disprove. Copper hasn’t broken, either.

    Dow Jones
    S&P 500

    Stocks rose 433.88 from last week’s close, then gave back that plus another 140 points for the week. Dow today suffered its largest loss since September, slicing off 379.39 or 2.12% to 17,125.45. S&P500 was close behind, losing 36.48 or 1.79% to 2,005.41. Both have fallen through their 200 DMAs, both are falling on sharply rising volume, and both are now nearing the lip of that upside-down bowl formation, where awaiteth them an open manhole and swift trip down the drain. All these concatenated scream, “Lower, and yet lower!”

    Yea, more dramatic still are the Dow in Gold and Dow in Silver, straight down today. Dow in Gold lost 3.47% to end at 16.08 troy ounces. Dow in silver today dropped worse, down 4.95% to 1,215.14 oz, down 63.07 oz. from its high this week. Momentum points down for both, good for silver and gold prices.

    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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