• Gold Price Smashed Through it's Resistance Shooting up $15.50 to $1,121.70

    26-Jan-16 Price Change % Change
    Gold Price, $/oz 1,121.70 15.50 1.40%
    Silver Price, $/oz 14.54 0.30 2.13%
    Gold/Silver Ratio 77.125 -0.558 -0.72%
    Silver/Gold Ratio 0.0130 0.0001 0.72%
    Platinum Price 875.20 15.00 1.74%
    Palladium Price 491.75 2.05 0.42%
    S&P 500 1,903.63 26.55 1.41%
    Dow 16,167.23 282.01 1.78%
    Dow in GOLD $s 297.95 1.10 0.37%
    Dow in GOLD oz 14.41 0.05 0.37%
    Dow in SILVER oz 1,111.61 -3.93 -0.35%
    US Dollar Index 99.13 -21.00 -17.48%

    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

    Today was the day SILVER and GOLD PRICES finally burst through, and they did it in the teeth of stock market strength. THIS is that strength we want to see.

    Today the GOLD PRICE smashed through $1,113 resistant and shot up $15.50 (1.4%) to shutter Comex at $1,121.70. Silver outran the gold price, spurting up 30.4¢ (2.1%) to $14.544.

    Since that low Friday the price of gold has steadily advanced. Somebody tried to cudgel it about 2:30 a.m. and knocked it from $1,117 back to $1,111, but it charged back with a vengeance, stopping just short of $1,125 resistance. Couldn’t ask much more for one day’s move. In fact, the gold price has generally kept climbing since the 14 January intraday low at $1,071.70. Close through $1,125 gives us lift-off to $1,155, next resistance.

    The SILVER PRICE likes to knocked the skin off its head, butting its way through $14.40, but kept at it until finally it burst through — then it was moving so fast it never stopped until $14.58. Closing near the top of the day’s range is also a strong sign.

    These are the two first-breakouts and confirmations we have been waiting for so long. Silver will run for its 200 DMA, now $15.19, and not far above that, at $15.50 will hit the downtrend line from the 2013 high. Above that is the Big One, the downtrend from the April 2011 high. But I’m getting ahead of myself. This time we will see a touch toward that 200 DMA and a first try to pierce that post 2013 downtrend line.

    Buttressing these conclusions are a probable bottom in platinum and in palladium, and the silver and gold price strength against stock strength.

    Buy the silver and gold breakout

    Of all the stupid headlines I’ve ever seen in the financial press, an unthinkably large number, today I saw one of the top stupidest: “Rally in oil prices pushes stock market higher.” How can rising fuel costs be good news for any stock except an oil producer? Mercy. Aggravated stupidity jes’ tahrs me out.

    Dow Industrials rose 282.01 (1.78%) to 16,167.23. S&P500 gained 26.55 (1.41%) to 1,903.63. That leaves the chart plainly saying that the low close on the 20th marked the beginning of a relief rally. Aiming for 20 day moving average (now 16,579.88) or 16,600 (S&P500 for 1,950). Lo, NOW is come the time for stock owners to lighten their load! Now is come the time to take advantage of this rise. If you don’t, sorrow and tooth clenching and hair pulling will result when the waterfall resumes.

    Dow in silver fell today 0.15% to 1,113.83 oz while Dow in Gold barely rose, up 0.7% to 14.41 oz. Yes, yes, yes.

    US Dollar Index

    US dollar index teetered and faltered wackely all day, peeling off 21 basis points to fall to 99.13. Since the dollar skidded form an intraday 99.56 on 21 January. If it crosses 99, it falls out of a rising wedge, usually fatal in wavering markets. Watch closely tomorrow, as a dollar plunge won’t hurt the silver or gold price a bit.

    Euro poked its itty head above the downtrend line and rose 0.15% to $1.0867. As Queen Victoria might say, “We are not impressed.” Still below the 20 DMA. Weak as orphanage gruel or federal government good will. Yen backed off 0.11% to 84.43, slap at the 20 DMA. Expect higher yen.

    Most hearty thanks for your prayers on Susan’s behalf in her eye surgery. She had the surgery early this morning, the surgeon said the results were great, and she’s home sleeping now. Kind of looks like a pirate, tho, with that eye patch. If she starts mumbling, “Aaargh, Matey!” I’ll get nervous.

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger

    © 2016, 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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