The Gold Price Bettered Yesterday's Performance by Rising $16.40 to $1,528.70

Gold Price Close Today : 1528.70 Change : 16.40 or 1.1% Silver Price Close
Today : 35.911 Change : 0.509 or 1.4% Gold Silver Ratio Today : 42.57 Change :
-0.149 or -0.3% Silver Gold Ratio Today : 0.02349 Change : 0.000082 or 0.3%
Platinum Price Close Today : 1727.20 Change : -14.00 or -0.8% Palladium Price
Close Today : 766.55 Change : -8.90 or -1.1% S&P 500 : 1,337.56 Change : -0.32
or 0.0% Dow In GOLD$ : $170.59 Change : $ (1.21) or -0.7% Dow in GOLD oz : 8.252
Change : -0.059 or -0.7% Dow in SILVER oz : 351.29 Change : -3.77 or -1.1% Dow
Industrial : 12,615.28 Change : 45.41 or 0.4% US Dollar Index : 75.03 Change :
0.339 or 0.5% With SILVER and GOLD we stand in great peril of misunderstanding
either way: discounting a real rally, or crediting a spurious one. The Gold
Price bettered yesterday's performance by rising $16.40 to $1,528.70, not quite
closing thru that definitive $1,530 mark, but clearing $1,525. Sometimes those
resistance/support areas don't lie exactly where you think. On gold's side for a
breakout, it has traded clean through the 20 and 50 DMAs ($1,522.17 and
$1,520.28). It did push as high as $1,533.60, and defended $1,510 handily at
$1,509.90. Chances are, today exhausted for the nonce gold's upward energy.
Unless it punches thru $1,533.60 tomorrow, expect it to rest between $1,518 and
$1,530 a day or two. Proof the past two days were merely an anomalous
short-covering rally comes with any close below $1,500. Otherwise we are faced
with the conclusion that gold has already finally bottomed on Tuesday at
$1,482.30. The Silver Price gobbled up another 50.9c and ran as high as 3625c
but couldn't hold those heights. Comex closed at 3591.1c. Close, but no cigar,
and in my mind that 3600c mark carries lots of weight. Silver remains above its
20 DMA (3541c). This is the part of this job I dislike, not because I dislike
making decisions but merely because they seem so momentous at the time, but are
in truth minute. Do we buy silver at 3600c or 3300c, an 8.3% difference? Will
that little difference really engage your attention at all when the Silver Price
trades at US$106.50? Right, if 3304c was the low, then a reasonable target is
10650c. Yes, the 8.3% is important, but in the long run it won't be the
difference between blood plasma and Gatorade, just between one teaspoon of sugar
in your tea and one and a quarter. Right now silver only needs to hold above
3550c, and can drop at most to 3360c. Buy all you can on any retreat. I'm tired
of waiting. I haven't totally shaken the hope we will see the 200 DMA (not
3186c) but that hope grows as dim as one of those blamed fluorescent light bulbs
the government is now stuffing down our throats. Silver and Gold Prices remain
in a long term bull market. Forget the fluctuations, the only strategy in a bull
market is to buy, and then buy more, never looking back. On Friday the Dow in
Gold dollars shot above the 200 DMA to G$175.48 (8.489 oz). The last two days
the DiG$ has filled that gap up and collapsed nearly to the 50 DMA G$168.268
(8.14), closing today at G$170.59 (8.252). What does all that mean? That stocks
have shot their bolt against gold. Today the Dow and S&P500 contradicted each
other. Dow rose 45.41 (0.36%) to 12,615.28 in ragged trading but the SYP500,
likewise ragged, closed 1,337.56, down 0.32. Dow remains broken out above the
downtrend line, so you have to count the trend still in force as long as it
hasn't been contradicted. Nonetheless, I have no more desire to own stocks than
I have to contract elephantiasis. Oh, what mourning, weeping, and gnashing of
teeth await stock investors! US DOLLAR INDEX keeps on ratcheting up, step by
step. Today it crossed through 7470 and jumped over 75, and not tradeth at
75.025, up 33.9 basis points (0.44%). Some horizontal resistance awaits at 75.75
- 76, but inertia favours the dollar. It is trading above its 20 and 50 DMAs.
May make slow progress, but will keep on progressing upward. Euro and yen showed
no cards today. All the euro's recent rallying only traced out a confirmation of
the downtrend. Euro closed today 1.4317, down 0.74%. Yen closed Y80.95/$
(123.54c/Y100). All quiet there. 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.