Gold Price is Climbing up the December Low and Should Break Above it Tomorrow

Gold Price Close Today : 1784.90 Change : 14.90 or 0.84% Silver Price Close
Today : 35.556 Change : 1.300 cents or 3.79% Gold Silver Ratio Today : 50.200
Change : -1.470 or -2.85% Silver Gold Ratio Today : 0.01992 Change : 0.000567 or
2.93% Platinum Price Close Today : 1724.10 Change : 1.75 or 0.10% Palladium
Price Close Today : 716.80 Change : -5.65 or -0.78% S&P 500 : 1,363.45 Change :
5.79 or 0.43% Dow In GOLD$ : $150.38 Change : $ (0.71) or -0.47% Dow in GOLD oz
: 7.275 Change : -0.034 or -0.47% Dow in SILVER oz : 365.20 Change : -12.51 or
-3.31% Dow Industrial : 12,984.91 Change : 46.24 or 0.36% US Dollar Index :
78.65 Change : -0.565 or -0.71% Surprise! the GOLD PRICE rose $14.90 (0.84%) to
$1,784.90. The SILVER PRICE did not punish my impatience in buying yesterday,
but confirmed my suspicions with a 130c jump through the 300 DMA to 3555.6c, up
3.9%! This broke the GOLD PRICE through the fan-line drawn from the September
high to the February high, a fan-line already raised from the November high.
Gold is climbing up the backside of the uptrend line from the December low, and
should break above it tomorrow. In fact, it should hit $1,805 (November high)
tomorrow. From there we either get a correction (or maybe a rise to $1,825 and
then a correction) or the ride gets wild indeed. (today's high came at
$1,787.18). Stepping back and looking at a three-year chart, the GOLD PRICE peak
in early September at $1,923.70 appears to have completed an A-B-C correction,
so unless gold gainsays that will a fall through its 150 day moving average, I
will work on that presupposition. I don't know what was holding silver back, but
nothing could hold it today. After it hit 3559c, it dropped only pennies to
close at 3555.6c This is textbook stuff now. SILVER has punched through its 50,
20, 300, and 200 DMAs. Momentum is nearly as UP as it gets. It also broke
through internal resistance about 3440. What can go wrong? Only this: Silver's
Relative Strength Indicator is at 72.11, well above the 70 overbought mark.
Also, the MACD appears to be topping. Still, hard to see how silver will not
reach 3950c before it pauses for a correction. Every news item about gold is not
a cause for hysteria or proof of a conspiracy, although many internet writers
view them so. Take for instance the Zero Hedge article today, "PROJECTED PIIGS
PILLAGE: 3233.5 Tons of Gold TO BE CONFISCATED BY INSOLVENT EUROPEAN BANKS."
Ahh, first of all when a lender reclaims property from a borrower it's not
called "confiscate" but "foreclose." Second, when the country voluntarily makes
its gold reserves liable to seizure for debt default, it stretches vocabulary to
call that a confiscation. Third, the Greek population is not about to lose its
gold, as the article claims, since the individuals of the population do not own
the gold, the government or the central bank does, quite different persons.
Individual Greeks, I feel sure, will hold on to their gold quite tightly. The
article claims that the Greek sellouts -- the technocrats installed to engineer
the bank bailout -- are making or have made changes to the Greek constitution
that allows the creditor banks to "plunder" the Greek gold," amounting to 111.6
tonnes (3.583 million oz.) Tyler Durden then bootstraps off all these claims to
aver with "100% certainty" that the other PIIGS countries will be plundered of
their 3,234 tonnes of gold (103 mn oz). But where is the surprise, and where is
the confiscation? These borrowers made themselves slaves to the lender, the
banks, who control their respective governments and the EU. Did anyone believe
that the banks would not strip these lands of every asset, private and public,
when they couldn't repay? What is as cold as a banker's heart? And when you lose
the collateral, it's not confiscation it's bankruptcy and foreclosure. What is
truly surprising and grotesque here is not that the bankers are sucking Greece
dry and impoverishing the people, making debt slaves of the nation. Rather, it
is surprising that the Greeks so mildly accepted the technocrat(s) the bank
imposed on them as their government and that they don't rise up in arms to
overthrow them all. Now that is truly amazing. But what do I know? I can barely
operate a computer and am still not too hot at tying shoes. The euro today
surged on better than expected German economic data. That took the euro above
the last high (1.3322s) and sets it up to retrace at least 50% of its November -
January fall, targetting 1.3435. That news was enough to panic folks out of the
US Dollar. The dollar index lost 56.5 basis points, a hefty 0.73%, to end at
78.646. Alas, for you dollar holders, that took the dollar below its 20 DMA
(79.11) and bends momentum downward. Don't write the Samolean off just yet,
though. As long as it abides above 78, it holds the hope of higher prices. It is
drawing nigh its last low (78.36), though, where it must either buy a ticket or
get off the bus. As I suspected, the yen rallied 0.39% off its close yesterday
to end at 125.09c/Y100 (Y79.94/US$1). It could rally to fill several gaps all
the way up to 128.6. That ought to end its downward bias for a while. This stock
thing causes pain in the watching. Today the Dow reached 12,996 -- almost, but
not quite that 13,005 high of Tuesday. I suspect a lot of people, stuck with
losing stock positions, view 13,000 as their flashing Green light to get out of
stocks. Dow rose 46.24 (0.36%) to 12,984.91, but notice that the Dow In Gold
Dollars fell again. Nor did the S&P500 reach its Tuesday glory, but closed up
5.79 (0.43%) to 1,363.45. Folks get antsy when they look only at stocks and see
how much they've climbed since March 2009, overlooking that silver and gold have
climbed much, much more. When you view the Dow divided by silver or gold you can
see stocks' steady downward trend. 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.