Gold Price Must Close Clean Through $1,435, Then Advance to $1,451

Gold Price Close Today : 1427.50 Change : 1.30 or 0.1% Silver Price Close Today
: 36.271 Change : 0.269 cents or 0.7% Gold Silver Ratio Today : 39.36 Change :
-0.258 or -0.7% Silver Gold Ratio Today : 0.02541 Change : 0.000165 or 0.7%
Platinum Price Close Today : 1740.30 Change : -6.60 or -0.4% Palladium Price
Close Today : 737.90 Change : -9.50 or -1.3% S&P 500 : 1,293.77 Change : -4.61
or -0.4% Dow In GOLD$ : $174.04 Change : $ (0.40) or -0.2% Dow in GOLD oz :
8.419 Change : -0.019 or -0.2% Dow in SILVER oz : 331.36 Change : -0.52 or -0.2%
Dow Industrial : 12,018.63 Change : -17.90 or -0.1% US Dollar Index : 75.45
Change : 0.044 or 0.1% As I expected, the GOLD PRICE didn't do very much today,
merely moved sidewise. Sure, it gained $1.30 on Comex, and defended an attack
all the way down to $1,419.90, but it snapped right back to close at $1,427.50.
That does not qualify as a rousing, unequivocal breakout over $1,425, but
considering where gold was coming from in a long rise, it saved face. Stakes are
very high here. Either gold closes clean through $1,435, then advances to $1,451
(2% above the 3 January high), or it has formed a broadening top. That consists
of a series of slightly higher or even highs, accompanied by slightly lower
lows, so that the chart shows a megaphone opening to the right. Should that be
what gold has in mind, then it has quite a correction in store. However, it
would need to close below the last low, $1,308, to confirm that. So gold is
stuck in between, and we can't say whether it will rise or fall unless it closes
above $1,436 or below $1,420. If I had to guess, I'd say gold will rise, but I'm
just a natural born fool, just guessing. The SILVER PRICE added another 26.9c
today to close at an altogether new high of 3627.1c. That close also took the
gold/silver ratio to a new low, 39.36, marginally. Silver above 3650c will run
away like half-broke horses pulling a steel-wheeled wagon over gravel. Below
3540c silver will act like the water in your bathroom sink when you pull the
plug. Right now, the momentum favours higher prices. Think and recall: primary
uptrend. Bull market. Several more years for silver and gold to rise. Don't let
go of that, no matter how markets bounce up and down. Here's another interesting
but small fact: the wholesale buy side discount on US 90% coin rose today from
75c to 70c. A tiny sign, but may prove meaningful. Stocks aquitted themselves
most raggedly today. Down as much as 36 points, the Dow in the end climbed the
last of four hills to close down only 17.9 points at 12,018.63 (S&P500 lost 4.61
at 1,293.77). Yet again the Dow deals with the magical 12,000, so fraught with
juju in the investment jungle. Appears that yesterday marked the limit of
stocks' recovery from the 11,555.48 low of the last downleg. Strengthen that
notioning, the Dow closed below its 50 DMA (12,029), and more, volume dried up
yesterday, never a good sign for a rising market. Finally, it remains below the
downtrend line from the February high. This could be worse -- we could tie
anchors and ploughshares about its ankles -- but it's quite bad enough as is.
Only hint it might rise lies in the MACD, where the Dow may be struggling to
turn up. Imagine a lottery where not only do you have to pay for a ticket, you
have to pay the winner as well. That's stocks. Stay away. Idea keeps fidgeting
in my head that the Japanese earthquake shook stock markets world-wide and they
may not recover soon. Nikkei closed today at 9608, down form a 10,891 February
high by almost 12%. The Nice Government Men from many nations have put their
heads together and seem to be jimmying the Yen market nicely. Eded down today
0.07% at 80.91 yen to the dollar (123.59 cents to 100 yen). They have beaten it
back from the deadly 124 boundary. THE US DOLLAR INDEX added a scootsh today,
4.4 basis points to 75.445. Here we go again. The buck stands at its November
low, and will either find footing in a double bottom or sink clean thru that
mark in a race toward, first, 74.23 (Nov. 2009 low) or 70.70 (2008 low). It's
ridiculous trying to forecast a currency exchange rate technically, because
central banks manipulate all rates. The dollar has sunk from 120 in 2001 to
70.70 in 2008. Y'all think that happened by accident to a bank that can print or
withdraw as many dollars as it pleases? It happened because somebody in the Bush
(and now Obama) regime decided to let the dollar depreciate. What? You, there!
Mushroom! You object to that policy? You whine that it will pauperize orphans
and widows and pensioners? Quiet, mushroom! You can't make a central bank
omelette without breaking eggs, and if you're not careful, we might just throw
in some mushrooms, too. On this day in 1765 the English parliament passed the
Stamp Act, the first direct tax on American colonists. It was NOT popular, and
parliament repealed it a year later. Speaking of stamps, they tell a fairly
accurate tale of inflation. When I was a boy, a first class stamp cost 4 c. On
this day in 1981 stamps went from 15c to 18c. On this day in 2002 (I think this
is National Raise Postage Rate day) the rate was raised from 34c to 37c. Today
it costs 44c, and congress ain't about to repeal that. Argentum et aurum
comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The
Moneychanger The-MoneyChanger.com © 2011, 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 $195.66; stocks' primary trend is down, targeting Dow under
2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary
trend down; real estate in a bubble, primary trend way down. Whenever I write
"Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining
stocks, too?" No, I don't.