• Gold Price Lost $21.60 to Close at $1,644.90 it's Oversold but may Move Lower


    Gold Price Close Today : 1644.90
    Change : -21.60 or -1.30%

    Silver Price Close Today : 29.612
    Change : -1.43 or -4.61%

    Gold Silver Ratio Today : 55.548
    Change : 1.863 or 3.47%

    Silver Gold Ratio Today : 0.01800
    Change : -0.000625 or -3.35%

    Platinum Price Close Today : 1546.20
    Change : -46.70 or -2.93%

    Palladium Price Close Today : 679.25
    Change : -18.10 or -2.60%

    S&P 500 : 1,443.69
    Change : 7.80 or 0.54%

    Dow In GOLD$ : $167.29
    Change : $ 7.50 or 4.69%

    Dow in GOLD oz : 8.093
    Change : 0.363 or 4.69%

    Dow in SILVER oz : 449.54
    Change : 22.63 or 5.30%

    Dow Industrial : 13,311.72
    Change : 59.75 or 0.45%

    US Dollar Index : 79.25
    Change : -0.089 or -0.11%

    The GOLD PRICE lost $21.60 to close Comex at $1,644.90. Silver lost a bruising 4.6% today, 143.3 cents, to smash support at 3100 AND 3000c by closing at 2961.2c.

    For both the gold and SILVER PRICE today’s move complete a 61.8% correction of the rise that began last June. Both have oversold RSIs, both have MACDs that are scraping their last bottom, both are below the long term moving averages I watch (150 and 200 for gold, 300 and 200 for silver).

    In short, they are oversold and ready to get oversold-er. Perverse, but when morale is broken in a market, it has to have its back completely broken before it reverses.

    GOLD/SILVER RATIO also points to more deterioration in silver. Today it gapped up to 55.548. and appears headed to close an old gap between 57 and 57.5. Silver and gold are in the waterfall phase, so this spasm could end in a few days. Will certainly pause for Christmas in any event.

    Since both metals cut through their uptrend line form the June 2012 low, underneath them now is only the Downtrend line from the 2011 highs, 2900 – 2850c for silver, $1635 – 1620 for gold.

    Sounds like I’ve got it all scoped out, but if I did I wouldn’t have gotten it so wrong till now. More than that, markets never do exactly what you expect them to. They move to support, and instead of stopping, pierce through before they reverse, or never quite reach support. It’s as if they know what you are thinking, and dodge on purpose. Thus the proverb that “bull markets always to shake off as many riders as they can.” Question is, can YOU hold on? Can you stand the heat?

    Thus every day markets give you a highly concentrated dose of humility.

    What we surely know is that silver and gold remain in a primary uptrend, and that every day brings us closer to the end of this correction. Just stand back and watch it a few days. There’s time, it’s not running away, and if it starts to climb, well, give it more time still. We need more certainty here like a dying man needs a drink of water.

    Be patient. Still, I have to buy at least a little silver here somewhere. Whenever that gap in the gold silver ratio is filled, that’d be about the day.

    Aww, shucks! Tomorrow’s the end of the world, according to some interpreters of the Mayan Calendar. Say, I have an idea for all y’all who’re convinced the world will end tomorrow: y’all send me your money. Probably better wire it, as there’s not much time left. While you’re at it, mail me your credit cards, too, and any jewelry you’re not planning to take with you.

    Dollar index fell 8.9 basis points to 79.245, nothing new there. Euro took advantage of that, hit $1.3300 as yesterday, but too spindly-armed to hold on there. Closed $1.3244, up 0.26%. Yen fell another tiny bit, to 118.49c/Y100. Got to be near the end of that fall.

    Stocks suffered a bad beating this morning, but found “sponsorship” in the latter part of the day, and managed to close above 13,300 at 13,311.72, up 59.75. S&P500 rose 0.55% (7.88) to 1,443.69. Weak and wormy, but will climb more, I believe.

    Argentum et aurum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger
    10:00am-5:00pm CST, Monday-Friday

    © 2012, 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 $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or 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. No, I don’t.

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