• The Gold Price Jumped $16.70 or 1.4 Percent to Close at $1,232.70

    12-Jan-15 Price Change % Change
    Gold Price, $/oz 1,232.70 16.70 1.37%
    Silver Price, $/oz 16.54 0.15 0.91%
    Gold/Silver Ratio 74.551 0.341 0.46%
    Silver/Gold Ratio 0.0134 -0.0001 -0.46%
    Platinum Price 1,240.40 11.30 0.92%
    Palladium Price 814.10 13.95 1.74%
    S&P 500 2,044.81 -17.33 -0.84%
    Dow 17,640.84 -96.55 -0.54%
    Dow in GOLD $s 295.83 -5.70 -1.89%
    Dow in GOLD oz 14.31 -0.28 -1.89%
    Dow in SILVER oz 1,066.88 -15.59 -1.44%
    US Dollar Index 92.22 0.06 0.07%

    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 is building steam but silver’s not paying attention. The gold price jumped $16.70 (1.4%) to close Comex at $1,232.70. Only one resistance level left to crash through. Silver gained on 14.9 cents (0.9%) to $16.535.

    Gold Price

    The chart on the right shows the upside-down head and shoulders in gold. The GOLD PRICE closed today nearly on the neckline, about $1,234. Resistance remains at the December (last) high at $1,239. Rule of thumb for measuring HandS breakouts is that when they break the neckline they will rise the height of the head. This head measures $1,130 to $1,250 or $120. Neckline is now about $1,235, so $1,235 + $120 = $1,355. Not coincidently tough resistance resides there. ‘Twould surprise no one if gold took a couple of days to crack this line, but once it does, ’twill run.

    Silver Price

    The SILVER PRICE doesn’t look bad, it just can’t build any momentum. Needs to pass break out of that diamond reversal pattern (it’s right on the line now) and clear $16.75 resistance. More to the point, silver needs to beat October’s $17.82 high then push through old support/resistance at $18.60. See chart on the left.

    The gold price has set itself up in the best position I have seen for many months, and will drag silver along for the ride. Start buying on any gold close above $1,240, both silver and gold.

    Stocks daily add evidence to my inference that they peaked in December and are rolling over for the Big Drubbing — thousands of points down. Dow today fell as low as down 165.79, but “rallied” up to close down ONLY 96.53 (0.54%) at 17,640.84. That’s below the 50 and 20 DMAs again, so momentum points down and other indicators agree. Even looking over my shoulder at the possibility stocks might fool me yet and make one last high, I still expect to see them lower tomorrow and next week.

    Forgot the S&P500 — it fell 16.55 (0.81%, more’n the Dow, to 2,028.26). Also had the ladder kicked out from under it, stands below the moving averages, and can only be caught by the last low at 1,992.44. If that misses, then a large trap door opens up.

    Dow in Gold and Dow in Silver both kept on tumbling today. Dow in Gold fell 1.3% to G$295.81 gold dollars (14.31 oz). Break of the last low at G$292.30 (14.14 oz) will accelerate the plunge.

    Dow in Silver fell only 0.81%, thanks to silver’s laziness. Ended at S$1,377.76 (1,065.01 oz).

    US dollar index moved sideways but a little higher, up 6 basis points to 92.22. Euro lost only 0.08% to $1.2834 while the Yen gained 0.15% to 84.48.

    West Texas Intermediate Crude fell another 4.44% to $46.07 and another new low.

    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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