Gold Price Closed at $1,654.10 Does the Five Day Chart Suggest a Slide Back Toward $1,605?

Gold Price Close Today : 1654.10 Change : (5.40) or -0.3% Silver Price Close
Today : 3048.20 Change : -3.2 cents or -0.1% Gold Silver Ratio Today : 54.265
Change : -0.120 or -0.2% Silver Gold Ratio Today : 0.01843 Change : 0.000041 or
0.2% Platinum Price Close Today : 1518.50 Change : -6.00 or -0.4% Palladium
Price Close Today : 676.50 Change : 7.60 or 1.1% S&P 500 : 1,314.50 Change :
6.64 or 0.5% Dow In GOLD$ : $157.77 Change : $ 1.09 or 0.7% Dow in GOLD oz :
7.632 Change : 0.053 or 0.7% Dow in SILVER oz : 414.15 Change : 1.91 or 0.5% Dow
Industrial : 12,623.98 Change : 45.03 or 0.4% US Dollar Index : 80.05 Change :
-0.560 or -0.7% Both the GOLD PRICE and the SILVER PRICE performed badly today.
GOLD fell $5.40 to close comes at $1,654.10. That wasn't what left the burr
under my saddle, though. It was a new high for the move at $1,669.92 followed by
a lower close. That's the first part of a key reversal, and will be confirmed if
gold closes lower again tomorrow. An ominous double top (at $1,670) dominates
the 5-day GOLD PRICE chart. A break through $1,645 puts gold on a slide back
toward $1,605. The SILVER PRICE lost only 3.2c, but again posted a possible key
reversal. Reached a new high for the move, 3087c, but then closed lower at
3048.2. 5-day chart looks worse, with a formation that is not quite but almost
an island reversal. From here SILVER would have to hold on at 3040c to continue
rising. Otherwise, we're looking at another trip to 2980c. I've been thinking
about the Dow in Gold Dollars and the Dow in Silver Ounces. Both have been
rising , silver since its April highs and gold since gold's August high.
(Remember, the DiG$ or DiSoz RISE when silver or gold are outrunning stocks and
fall when metals are lagging stocks). Dig's looks like it has topped, but is
above the 200 DMA and might still run to G$170 (8.224 oz of gold). DiSoz must
turn around soon from its present 415 oz or will climb toward resistance at 500
oz. What does this imply? That stocks may be about to outperform silver and gold
for a while. Gold's turning back at $1,670 (assuming it follows through downward
tomorrow) also sets both metals up for a test of the December lows. Get ready to
buy. Big news today was the Dow poking its head through 12,600 to close at
12,623.98, up 45.03 or 0.36%. Likewise the S&P500 rose 6.64 (0.5%) to close at
1,314.50. A reader pointed out to me yesterday that I might be missing an upside
down head and shoulders in stocks, and he may be right. However, if stocks rally
above this level, it will be a trap for bulls that will collapse to their grief
within short months. Other big news came from the euro, which made good its
escape through the downtrend line and cleared the 20 day moving average (1.2898)
today to close at 1.2965, up 0.84%. Assuming it closes above the downtrend line
tomorrow, the euro will have a minimum target of 1.325. This doesn't represent
any underlying strength or reform, only a technical reaction to the long fall
from 142.47 in October. Euro still stinks worse even than the US dollar. The US
dollar index fell 56 basis points (0.72%). Recall that 60% of the dollar index'
value is determined by the euro. Now trading at 80.05, barely above 80. That
certainly cracks the uptrend line, and leads to conclusion the dollar will fall
at least to its 50 DMA at 79.32. Japanese Yen lost 0.4% to 129.71c/Y100
(Y77.10/US$1). 'Twas a nasty fall, punching through but not staying below the 20
DMA (129.46). 50 DMA isn't far away at 129.13. Should the Yen close blow that,
well, it's headed for 128 again. Argentum et aurum comparenda sunt -- -- Gold
and silver must be bought. - Franklin Sanders, The Moneychanger
The-MoneyChanger.com © 2012, 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 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.