Silver and Gold Prices Remain in a Correction in an On-going Primary Uptrend (Bull Market)

Gold Price Close Today : 1651.90 Change : 11.60 or 0.7% Silver Price Close
Today : 31.970 Change : 1.653 or 5.5% Gold Silver Ratio Today : 51.67 Change :
-2.435 or -4.5% Silver Gold Ratio Today : 0.01935 Change : 0.000871 or 4.7%
Platinum Price Close Today : 1515.60 Change : 19.60 or 1.3% Palladium Price
Close Today : 606.50 Change : 29.50 or 5.1% S&P 500 : 1,164.97 Change : 20.94 or
1.8% Dow In GOLD$ : $139.20 Change : $ 1.34 or 1.0% Dow in GOLD oz : 6.734
Change : 0.065 or 1.0% Dow in SILVER oz : 347.93 Change : -12.92 or -3.6% Dow
Industrial : 11,123.33 Change : 183.38 or 1.7% US Dollar Index : 78.53 Change :
-0.393 or -0.5% Today stocks, GOLD , and SILVER built on bottoms struck on
Tuesday and Wednesday. Dollar stumbled again. Having finished the first leg of a
rally, the Dollar Index is correcting. Right now its trading 78.526, down 39.3
basis points or 0.51%. None of this clouds the dollar's rally picture. It's
quite overbought, so is experiencing merely a routine correction It will come
back, doubt it not. Nothing has changed on the euro's chart, although today it
rose 0.68% to 1.3438. Still looks sorry as gully dirt, but may rally to the 20
dma, now 1.3564, or to 1.3800, the bottom line of the trading channel it broke
down from. Around the globe the Japanese yen still has made no decision and
continues dancing sideways with its 20 dma. Closed today at 130.49c/Y100
(Y76.63/$1), up 0.17% The GOLD PRICE added $11.60 to yesterday's Comex close to
settle the day at $1,651.90. Back on 3 October gold closed $1,655, only to fall
off the next day. That $1,655 area is the resistance to beat right now. The GOLD
PRICE will likely pierce that tomorrow and push toward the next barrier at
$1,675. At $1,675 the GOLD PRICE will meet the top boundary of the flag it has
formed since 26 September, AND it will run head on into the downtrend line from
the September $1,923.70 peak. If gold can break through that strong resistance,
it could rise to $1,725 very quickly, scattering the shorts like quail in an
open field, and yet fall back once again. I am still not satisfied GOLD has done
sufficient penance. We may see lower lows yet. SILVER is showing tighter and
tighter supply, with wholesalers quoting delays now even on US 90% silver coin.
That certainly implies higher prices, but I could write off silver's gain today
-- up 165.3c to close Comex at 3197c) -- as merely a rally to the top of the
flag it has formed. Breaking through 3100c earns my respect, but can the SILVER
PRICE break 3350c? I know, I know, it sounds like I'm constantly moving the goal
line back, but in truth nothing has happened until the SILVER PRICE beats 3350c,
and pushes up to 3900c. In it favor, however, are tightening supplies and rising
premiums, and a most overbought condition in the RSI and MACD. SILVER and GOLD
PRICES remain in a correction in an on-going primary uptrend (bull market). More
downside is likely before the correction ends. I may be wrong as a tuxedo at a
cockfight, but I reporting what I see. 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. 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.