• The Gold Price Lost $2.10 Closing at $1,229.10

    27-Oct-14 Price Change % Change
    Gold Price, $/oz 1,229.10 -2.10 -0.17%
    Silver Price, $/oz 17.11 -0.02 -0.12%
    Gold/Silver Ratio 71.81 -0.03 -0.05%
    Silver/Gold Ratio 0.0139 0.0000 0.05%

    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

    Since I sent no commentaries four days last week, let’s look at the last ten days’ trading, that is, since Friday a week ago.

    Silver and GOLD PRICES swooned last week when gold failed to penetrate $1,250. More than that I suspect, the rally in stocks sucked wind out of gold’s sales. US dollar index also rallied slightly, or at least didn’t step through a well cover.

    The GOLD PRICE today lost $2.10 to close Comex at $1,229.10. Silver lost 2.1 cents to $17.115. Mercy! What did y’all do the market while I was gone?

    ‘Tain’t near as bad as y’all thought. The gold price had rallied up to its 50 DMA, then fell back to the 20 DMA. No big deal. Silver did the same with its 20 DMA.

    Right THERE is where the problem lies. The SILVER PRICE has dug its heels in and played the sluggard, not yet breaking through $17.75. And it may get worse the next two days waiting for that accursed FOMC meeting outcome, but after that mayhap the skies will clear.

    But y’all look at this, keep your eyes on the horizon: in spite of last week’s fall, both metals remain in an uptrend, higher highs and higher lows.

    Count on it. Next couple of days y’all ought to be buying, not moping around waiting for the yankee government to come around and steal whatever you have left. Some rob you with a six-gun, some with a fountain pen, but most with a printing press.

    The dollar index pushed up against its trading channel’s top boundary, but then faded Friday and today. 85.50 marks support. Once broken, the dollar index will fall further. Considering the hyperbolic rise it showed June – September, it has a while to correct, even if it plans to go higher eventually. I know loads of commentators are calling for a higher dollar, but I am not convinced. Course, what does a nat’ral born durned fool from Tennessee know? Why, we even get daylight later than New York.

    Yen had a falling week last week, but began to rally when it hit its 20 day moving average. Uptrend remains unbroken, if wounded. Today it gained 0.31% to 92.79. Euro closed up 0.23% to $1.2699. It fell last week, too, but today climbed back above that 20 DMA. It’s a pretty lazy rally.

    Speaking of rallies, what damage has the stock rally undone? For the Dow it has merely brought it back up to the downtrend line and almost to the 50 DMA. S&P500 has gotten above that downtrend line, but stalled at the 50 DMA. FOMC announcement this meeting, almost regardless of what they say (and they won’t say no surprises), will set off a one day rally. After that shot wears off, look for stocks to sink below the surface again.

    Dow and S&P500 gainsaid each other today. Dow rose 12.53 (0.07%) to 16,817.94 but the S&P500 dropped 2.95 (0.15%) to 1,961.63. Momentum is petering out — volume has been dropping all the way up.

    Stock markets were driven to ridiculous heights powered by the Fed’s money machine, not economics. Now that the Fed has tapered, so will stocks. You are watching the end of the long stock rally.

    Bearing witness thereunto are the Dow in Gold and Dow in Silver. All this stock market rallying hath done no more than drive the DiG up to its 20 DMA, recovering about half the ground it had lost, about par for a correction. Rose today 0.56% to 13.73 oz (G$283.82 gold dollars). Remains firmly in a downtrend.

    Dow in Silver rose 0.63% to 983.51 oz (S$1,271.61 silver dollars). Correction is a bit higher than gold, typical for silver, and it’s above its 20 DMA, but the downtrend abideth.

    Y’all enjoy your evening!

    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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