Gold Price Fell Below the Critical $1,705 Support How Far Can it Fall?

Gold Price Close Today : 1703.00 Change : (5.80) or -0.34% Silver Price Close
Today : 33.651 Change : (0.830) cents or -2.41% Gold Silver Ratio Today : 50.608
Change : 1.050 or 2.12% Silver Gold Ratio Today : 0.01976 Change : -0.000419 or
-2.07% Platinum Price Close Today : 1660.00 Change : -36.30 or -2.14% Palladium
Price Close Today : 707.00 Change : -9.20 or -1.28% S&P 500 : 1,364.33 Change :
-5.30 or -0.39% Dow In GOLD$ : $157.35 Change : $ 0.37 or 0.24% Dow in GOLD oz :
7.612 Change : 0.018 or 0.24% Dow in SILVER oz : 385.21 Change : 8.84 or 2.35%
Dow Industrial : 12,962.81 Change : -14.78 or -0.11% US Dollar Index : 79.36
Change : -0.031 or -0.04% It wasn't a great day for the silver or GOLD PRICE .
Gold dropped down to $1,694.93 to feel around with its toes for a bottom, then
closed Comex at $1,703.00, down 5.80 but more damaging to morale, below critical
$1,705 support. Gold tried to move higher today but was stopped cold at $1,713.
What bothers me is that the GOLD PRICE closed below its 150 day moving average
($1,715.09) which pushes momentum downward. Gold might catch at the 50 DMA,
$1,687.30, or might drop to the 200 DMA at $1,673, but in any event it looks
like this week will be painful. The SILVER PRICE dropped 2.4% (83c) to 3365.1c.
That lands silver below the crucial 300 DMA (3485), way below it. Face it, that
augurs lower prices, and offers 3250c to 3200c as a low. Watch. Let's see what
unfolds. I'm not expecting a gigantic drop, but this week silver and gold will
probably struggle. A gold close above $1,725 would gainsay that. Today was a day
of trifling and bewilderment. Stocks sank to the scalp, dollar burped back some
of Friday's gains, silver and gold suffered losses not apparently large, but
significant still. Here's a closer look. Dow dropped 14.78, down 0.11% to
12,962.81. looking at the lines, they have dropped out or are about to drop out
of the deadly rising wedge forming since last October. Dow cut through, but did
not stay below, its 20 day moving average (12,920.88), barely saving face for
its momentum. S&P500 did no better, down 5.3 (0.39%) to 1,364.33. These rising
wedges do not end well for bear markets, falling out downside -- and sharply --
almost every time. Should the Dow break 12,880 (today's low), wave bye-bye.
Quickly. US dollar index dropped 3.1 basis points today, nothing, to end at
79.359, still crowing above that 79 level. Euro gained 0.14% today to close
$1.3217, but the one year chart has peaked and should drop like the back side of
the Matterhorn. Yen tried again today to bottom, closing at 122.62c/Y100
(Y81.56/US$1). Yen remains severely oversold, but gives only feeble signs of
turning up. 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.