• Price of Gold Closed Up $16.40 or 1.32 Percent at $1,238.70

    24-Feb-16 Price Change % Change
    Gold Price, $/oz 1,238.70 -16.40 -1.31%
    Silver Price, $/oz 15.29 0.06 0.37%
    Gold/Silver Ratio 81.003 -1.380 -1.67%
    Silver/Gold Ratio 0.0123 0.0002 1.70%
    Platinum Price 943.40 0.70 0.07%
    Palladium Price 487.50 -12.75 -2.55%
    S&P 500 1,929.80 8.53 0.44%
    Dow 16,484.78 53.21 0.32%
    Dow in GOLD $s 275.10 4.47 1.65%
    Dow in GOLD oz 13.31 0.22 1.65%
    Dow in SILVER oz 1,078.00 -0.54 -0.05%
    US Dollar Index 97.50 0.01 0.01%

    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

    On Comex the PRICE OF GOLD closed up $16.40 (1.32%) at $1,238.70. In the aftermarket, though, it dropped about $9.00 to $1,229.60. Why? No clear reason.

    Gold Price

    Chart on the right, y’all will see the bullish flag or pennant I mentioned yesterday. Today the PRICE OF GOLD broke strongly UP out of that pennant. Great — break to a new high for the move, except that later it dropped clean back, giving up much of the day’s gains. After a rise into new ground, that leaves me sore as a rented mule. ‘Tain’t right.

    Gold/Silver Ratio

    Add to that the GOLD/SILVER RATIO at a new high, 81.003. Think of that as a giant cast iron lid coming down on a dutch oven, pressing that chicken (gold price) down into that pot. It also stands right at the top channel boundary line. This situation shall not last long. Chart on the left.

    One other thing: today’s high leaves that pennant looking more like a “bearish flag” than a pennant, and as its name whispers, a bearish flag usually resolves downward.

    No question SILVER PRICE did begin a key reversal on an End of Day chart, even though it rose 5.7¢ (0.4%) on Comex to $15.292. Rose into new high ground only to close lower. On strongly higher volume, so it’s likely to persist that direction.

    Unless the gold price can close above $1,264, it faces another leg down and soon. Silver’s acting like a sea anchor, pulling the gold price back. Don’t let any drops, even large ones, scare you off. That’s your opportunity to load the boat!

    I appeared on a new show today, David Simpson’s True Money. It was a lively and enjoyable 45 minutes. You can listen to it at http://bit.ly/21h6f4x and it should be available today. If not, ’twill be tomorrow. Look for True Money Episode XI. I didn’t know anything about the Veritas Radio Network, but now I’m intrigued by the little bit I do know.

    All’s Right In The World. Sure. Wells Fargo bank set aside $1.2bn for potential losses on oil and gas loans today. On 17 February JPMorgan set aside $500mn for its potential croppers. JPMorgan Chase is the largest (by total assets) bank in the US. Wells Fargo is the fourth largest. Mama, trouble in the oil patch means double trouble in the bank patch.

    Stocks didn’t tell us a durned thing today. Dow gained 53.21 (0.32%) to 16,484.78 while the S&P500 rose 8.53 (0.44%) to 1929.80. Both remained ABOVE the 20 day moving average, but BELOW and whipped by overhead resistance (16,600 and the 50 DMA for Dow and 1,950 and 50 DMA for S&P500). If I could tear the top label off that chart so I didn’t know what it was, I’d still say, “I have no more desire to own that than to own a 3-legged dog that can’t bark.”

    Dollar index pushed higher, but remains mired in the mud at 97.50, where today it closed. Don’t like 97.50 a-tall. Euro lost 0.08 to $1.1010, going nowhere slow. Yen hit a new high for the move at 89.25, up 0.4%.

    Whoa! Another day of improvement for Susan’s eye. Most hearty thanks for all your prayers.

    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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