• Gold Price Turned Around Clearing Resistance Levels

    1-Apr-15 Price Change % Change
    Gold Price, $/oz 1,208.10 25.00 2.11%
    Silver Price, $/oz 17.04 0.46 2.79%
    Gold/Silver Ratio 70.881 -0.472 -0.66%
    Silver/Gold Ratio 0.0141 0.0001 0.67%
    Platinum Price 1,165.20 22.60 1.98%
    Palladium Price 748.55 13.55 1.84%
    S&P 500 2,059.69 -8.20 -0.40%
    Dow 17,698.18 -77.94 -0.44%
    Dow in GOLD $s 302.83 -7.76 -2.50%
    Dow in GOLD oz 14.65 -0.38 -2.50%
    Dow in SILVER oz 1,038.38 -33.70 -3.14%
    US Dollar Index 98.51 -0.15 -0.15%

    3 Day Gold Price Chart
    3 Day Silver Price Chart

    I’m out of time so will have to make this short. Have to say something because it was a day of turnarounds.

    The GOLD PRICE hunkered down and jumped flatfooted over the fence: rose $25.00 (2.1%) to $1,208.10. That takes it clean over all that resistance from $1,190 – $1,205. Still, real target is $1,223, where the GOLD PRICE stalled on the last try. Look for gold to attempt that tomorrow.

    The SILVER PRICE jumped 46.3 cents or 2.8% to close Comex at $17.044. Like gold, silver jumped flatfooted over the fences at $16.80 and $17.00.

    Gold/Silver Ratio

    All this enthusiasm is confirmed by the GOLD/SILVER RATIO which closed Comex at 70.881. It punched through the 200 DMA today, but didn’t close there. It also punched through the uptrend line from the April 2011 low (listen to what I’m saying) but didn’t stay there. It closed barely above the line. Look at the chart on the right.

    It appears the ratio has formed a bear flag, that is, a pause after a rapid downward move where it appears to recover, trading in an upward channel. Then suddenly it breaks down out of that “flag” and resumes the sudden fall. If this flag flies at half-mast, as the measuring rule of thumb says, it targets a ratio move to at least 65.4. To confirm that it needs to drop again tomorrow.

    One day doth not a reversal prove, but this was a good start on it for silver & gold. Came faster than I was looking for. If it’s what I think, and we need higher closes tomorrow to prove it, then silver & gold have a stout rally before them.

    Stocks kept on sinking. Dow lost another 77.94 (0.44%) to 17,698.18. S&P500 gave up 8.2 (0.4%) to 2,059.69. WDF: Will Drop Further. Once stocks cut through that lower trading channel boundary, just a few points below, the rats will start POURING off the ship.

    Dow in Gold & Dow in silvertoday lost everything they had gained in the last two days. DiG closed below the 50 DMA, & the DiS is waaaay below it.

    US dollar index negated gains of the past two days, but didn’t quite close below the 20 DMA (98.39). Lost 15 basis points (0.15%) to 98.51. Yen and euro did nothing with this advantage. Dollar appears to have stumbled.

    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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