• The Gold Price was Holding Steady Until the FOMC Report Closing Down at $1,234.40

    17-Sep-14 Price Change % Change
    Gold Price, $/oz 1,234.40 -0.80 -0.06%
    Silver Price, $/oz 18.66 0.01 0.04%
    Gold/Silver Ratio 66.142 -0.068 -0.10%
    Silver/Gold Ratio 0.0151 0.0000 0.10%
    Platinum Price 1,363.70 -5.10 -0.37%
    Palladium Price 838.80 -5.40 -0.64%
    S&P 500 2,001.57 2.59 0.13%
    Dow 17,156.85 24.88 0.15%
    Dow in GOLD $s 287.32 0.60 0.21%
    Dow in GOLD oz 13.90 0.03 0.21%
    Dow in SILVER oz 919.30 0.99 0.11%
    US Dollar Index 84.75 0.53 0.63%

    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 was holding steady until the FOMC report. It had closed Comex down only 80 cents to $1,234.40, but the announcement took it down another $10. The SILVER PRICE closed Comex higher by 7/10 cent to $18.663.

    Here’s what’s odd. The GOLD/SILVER RATIO closed at 66.142, but in the aftermarket was trading lower, at 65.913. When a panic strikes it usually grips silver fiercer than gold, but not today. Silver’s relative strength is a good sign — no bigger than a cloud the size of a man’s hand on the horizon, but a good sign.

    Gold’s break in the aftermarket tugs it down to the low of its recent range and then some. It’s lustily oversold, but gives only the merest breath of a hint of turning up in the MACD.

    In the aftermarket silver lost 10 cents to $18.57, but didn’t reach its recent low. Unless both silver and GOLD PRICES come to life tomorrow, then we’ll have to endure yet more downside. “Come to life” means close higher, strikingly higher.

    Easiest thing in the world to do when things go against you is to panic — throw your hands up in the air, whine and cry, spiral down by lamenting all the stuff you didn’t see you should’ve seen and all the stuff you should have done but didn’t do.

    All that ain’t worth spit in the ocean. Worse, it only makes you feel worse and keeps you from taking action. Worse yet, it makes you look like a coward and whiner, and nobody likes those. Besides, I’d hate to admit I’d been whupped by the likes of pudgy Janet Yellum and the socialist apparatchiki at the Federal Reserve.

    Although for the moment it might seem that way. First thing you do when things go north is look around and ask if you’ve read them right. It is possible that what you are seeing right this instant is the WASH-OUT in silver and gold and blow-up in stocks and the US dollar. I won’t know until we see how markets continue tomorrow.

    The FOMC’s announcement contained no hint of raising interest rates anytime soon, and emphasized that by mumble-mouthing about the labor market.

    At first stocks foundered on the FOMC announcement, then, reasoning (if they reason) that Zero Interest Rates are good for stocks (they’re not), they rose. Dow made a new high close at 17,156.85, up 24.88 or 0.15% but the S&P500 did not make a new high, rising only 2.59 (0.13%) to 2001.57. Both charts show what could be double tops, or a continuation higher.

    Today took the Dow in silver to 925.15 oz (S$1,196.13 silver dollars) and the upper boundary of that rising wedge. Must stop here if it intends to stop. Dow in Gold broke through the December high (13.80 oz/G$285.28) to end up 1.09% at 14.02 oz (G$289.82).

    The US dollar index rose 53 basis points to 84.75. Remains fabulously overbought and due for a correction. Maybe tomorrow? FOMC wrecked the yen, down 1.13% to 92.30c/Y100. Euro lost only 0.8% to $1.2859, right at the bottom of its recent range.

    Most interesting and most paradoxical is the 10 year US treasury note yield ROSE today, by 0.42% to 2.600%. That carries it up into the triangle it broke out of, and above the downtrend’s upper boundary. It broke out upside. On news the Fed isn’t raising rates any time soon. I can’t parse that.

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

    – Franklin Sanders, The Moneychanger

    © 2014, 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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