• The Gold Price Punched Through it's 20 and 50 Day Moving Averages Closing Up at $1,203.30

    27-Apr-15 Price Change % Change
    Gold Price, $/oz 1,203.30 28.10 2.39%
    Silver Price, $/oz 16.39 0.76 4.85%
    Gold/Silver Ratio 73.399 -1.761 -2.34%
    Silver/Gold Ratio 0.0136 0.0003 2.40%
    Platinum Price 1,152.70 32.30 2.88%
    Palladium Price 782.15 12.20 1.58%
    S&P 500 2,108.92 -8.77 -0.41%
    Dow 18,037.97 -42.17 -0.23%
    Dow in GOLD $s 309.88 -8.15 -2.56%
    Dow in GOLD oz 14.99 -0.39 -2.56%
    Dow in SILVER oz 1,100.28 -56.04 -4.85%
    US Dollar Index 96.89 -0.21 -0.22%

    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

    Something’s not right, and for a change it may be not right in our favor.

    The GOLD PRICE today rose $28.10 (2.4%) to end the day on Comex at $1,203.30. Silver rose 75.8 cents — 4.85% — to $16.394. More, this happened on options expiry day with a huge clot of $1,200 strike call options outstanding. One expects “Someone” to manipulate the price down on such days so that the options expire worthless — maybe they did the manipulating last week & bought back the options positions? This is not how the game usually works.

    Gold Price

    But standing back from the chart, putting your hand over the label & simply asking, “What’s this market doing?” brings only one answer: reversing upward.

    The GOLD PRICE actually punched through its 20 & 50 day moving averages ($1,197.86 & $1,192.22). This was brute strong trading action, but it can only count as a first step. Below $1,210 and $1,225, the gold price does no more than tread water.

    Still, this is hopeful, and points to very deep pocketed buyers below $1,180. Sort of sets a floor under gold. Chart’s on the right:

    During the day gold made tee-tiny progress until 11:30 a.m., when at a single bound it shot from $1,185 to$1,200, ran as high as $1,207, then settled back. No, I don’t know what the catalyst was, which points to something working on the floor, something opaque. Maybe all those short gold were spooked when it pierced $1,200? Whatever caused it, it shows strength.

    Gold Price/US $ Index

    Did I forget to mention that the gold price broke out today in the $gold:$USD, gold/US dollar index spread? Shame on me. Looky here at it above the 50 DMA on the right.

    Silver Price

    Gold was strong? Look at silver:

    The SILVER PRICE had formed a falling wedge, traded out into the nose, and today burst upwards & closed above the 20 & 50 DMAs.

    A close tomorrow above $16.60 for silver and $1,210 for gold would initiate a rally.

    After all the new highs last week, stocks just fizzled today. Dow lost 42.17 (0.23%) to end up at 18,039.97, again. S&P500 lost 8.77 (0.41%) to 2,108.92. Hear me now: these drops today LOUDLY refuse to confirm last week’s new highs. Disagreement means weakness. Breakout reversed, and was false.

    Gold/Silver Ratio

    Mercy! Look at that GOLD/SILVER RATIO In one short day it gapped down and regained everything it had lost in the month of April, but then bounced back up to close barely above the 20 & 50 DMAs. A sign of yet more strength.

    I’m much too nice to gloat, but if I was ever tempted to gloat, it would be today. That Dow in Gold hit that upper gator jaw Friday and even I was lower than a fat frog in a deep well. Bottom rail’s on top today, though. Shot straight down from Friday’s high to close at G$309.87 gold dollars (14.99 oz), down 2.17%. It cut through the 50 dma and stopped right at the 20 dma. Look, look, that top gator jaw HELD.

    Dow in Silver didn’t “decline,” it dropped straight down like the guest of honor at a hanging. Dropped S$64.93 silver dollars (50.22 troy ounces) to S$1,422.58 (1,100.28 troy ounces). Also landed sliced through the 50 DMA & skidded to a stop at the 20 DMA.

    The top gator jaws HELD.

    US dollar index helped metals some by dropping 21 basis points (0.22%) to 96.89, but it was a-workin’ in that direction long before gold & silver shot up, so that explains nothing.

    Today’s trading puts a whole new light on things. If silver & gold can just close higher tomorrow, we’ve got something cookin’!

    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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