• Gold Price Gained $15.40 or 1.28% to $1,219.30

    6-Jan-15 Price Change % Change
    Gold Price, $/oz 1,219.30 15.40 1.28%
    Silver Price, $/oz 16.60 0.42 2.62%
    Gold/Silver Ratio 73.439 -0.973 -1.31%
    Silver/Gold Ratio 0.0136 0.0002 1.32%
    Platinum Price 1,220.80 10.70 0.88%
    Palladium Price 800.40 7.20 0.91%
    S&P 500 2,002.61 -17.97 -0.89%
    Dow 17,371.64 -130.01 -0.74%
    Dow in GOLD $s 294.52 -6.00 -2.00%
    Dow in GOLD oz 14.25 -0.29 -2.00%
    Dow in SILVER oz 1,046.30 -35.46 -3.28%
    US Dollar Index 91.82 0.17 0.19%

    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 gained $15.40 (1.28%) to $1,219.30 on Comex while silver added 42.4 cents (2.62%) and ended at $16.603.

    That, friends, was what we were looking for, a clean gold break through $1,210 and a silver close above $16.50.

    Gold/Silver Ratio

    The chart on the right shows that the diamond pattern in the GOLD/SILVER RATIO has not been broken, only re-drawn. This is a good sign: the ratio has fallen below its 20 and 50 DMA and is working at falling out of the diamond pattern. Closed right on the line today. C’mon, drop!

    The SILVER PRICE leapt through its closely aligned 20 and 50 day moving averages today like Patton through France. I wanted this close above $16.50 to break silver out of its recent range. Good, now like Bedford Forrest I want silver to “keep the skeer” on ’em while it’s got ’em running. Needs to pop through that last (December) high at $17.35. Yet remaineth above our real goal, $18.60.

    The gold price, already above its 20 and 50 DMAs, pushed through the downtrend line from the October 2012 high. So far this altitude has caused it to swoon on past attempts, but here we go again. Neckline of that suspected upside-down head and shoulders is about $1,238 tomorrow, which coincides with resistance.

    This is all good, and there is no sorrow with it. Yes, yes, we need further confirmation, but progress so far is best we’ve seen in a long, long time.

    Here as the year begins it’s a good idea to remind y’all and me that another little sign hangs on my wall: “The market is not benevolent.”

    It ain’t, either. The market does not wish you well, the market does not wish you ill, it’s just a tool, like a hammer or a dental drill. Y’all might do well to reminder yourself of that: “The market is not benevolent.”

    At one point today the Dow had sunk 239.25 to 17,262, but it managed to recover about 100 points to down only 130.01 (0.74%) at 17,371.64. S&P500 dipped 17.97 (0.89%) to 2,002.61.

    Here’s the place we discuss drawing to inside straights. Y’all know in poker that if you have a A, K, J, 10, you don’t draw for that Queen, because you have practically zero chance of getting her. In the same way, when a market is clean, plumb stacked to fall more and more, you don’t buy it.

    Stocks are sticking up higher and higher to fall lower and lower. They are below their 20 and 200 day moving averages. RSI, MACD, Stochastics all point in bland unanimity toward earthworms.

    There’s more. The Dow broke its uptrend line from 2009 back in August, and hasn’t been able to climb above since. Tonight the S&P500 is perched on the selfsame line, ready to jump off. I know some clever New York folks might not think much of that as an indicator, but I’m no mor’n a nat’ral born durned fool from Tennessee, so I have to rely on jerry-rigged indicators like that.

    Not too killing far below — 16,959 and 1960 — hover the 200 day moving averages. Bull markets must and usually float above that 200 DMA. ‘Tis bad, bad juju to fall through it, often opening a trap door.

    And looky here, didn’t this nat’ral born fool find himself in toney comp’ny today! The Bond King Bill Gross, whose pencil I am not fit to sharpen, pounded the stock market today. He observed — O, my — that the 6-year rally has been boosted by crazy-easy monetary policy and hasn’t produced any real economic growth. There’s more — he was madder than a wet wasp.

    Whooo-eee! Jes’ look at that Dow in Gold. It sank another 1.91% today about G$5 gold dollars, to G$294.57, down below that G$300 that had proven such tough resistance. The DiG now lieth beneath its 20 and 50 DMAs, the 20 has crossed below the 50, and indicators are falling like artillery shells. DiG has almost reached the lower Gator Jaw, now at G$293.54 (14.20 oz). Should accelerate once it breaches that, but that was where it reversed last time, in fact, below that line.

    Dow in Silver dove another 3.41% to S$1,350.02 silver dollars (1,044.16 oz). Yes, yes, it’s below both moving averages and approaching the lower Jaw (now S$1,312.32 or 1,015 troy ounces).

    US dollar index made a funny move today. Opened lower than yesterday, climbed and closed higher, but never reached yesterday’s intraday high. Jes’ looks odd. US Dollar Index closed up 17 basis points (0.19%) at 91.82.

    Euro looks sick as a dog eating poisoned meat. Closed at the bottom of today’s range and a new low, $1.1894, down 0.34%. The Yen, on the other hand, broke out upward through the 20 DMA AND the downtrend line from the October high. It’s rallying, but on what news? Durned if I know, but the chart don’t lie.

    What nearly ripped out my eyeballs today was the fall in the 10 year Treasury note yield, down 3.73% to 1.963%. Gapped down. Since bond prices rise when yields fall, that testifies that somebody is buying bonds, and those with motive, means, and opportunity are scared stock market investors.

    West Texas intermediate Crude fell another 4.04% to $47.93/barrel. This ain’t nat’ral, folks.

    Today is the Feast of the Epiphany, also called the Feast of the Three Kings that celebrates the visit of the magi to Christ. It marks the 12th day of Christmas and ends the Christmas season. Y’all thought it ended December 26th.

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

    – Franklin Sanders, The Moneychanger

    © 2015, 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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