The Gold Price is Trapped Between $1,640 and $1,665 One Way or Another this will Break Next Week

Gold Price Close Today : 1,655.50 Gold Price Close 9-Mar : 1,710.90 Change :
-55.40 or -3.2% Silver Price Close Today : 3257.3 Silver Price Close 9-Mar :
3417.5 Change : -160.20 or -4.7% Gold Silver Ratio Today : 50.824 Gold Silver
Ratio 9-Mar : 50.063 Change : 0.76 or 1.5% Silver Gold Ratio : 0.01968 Silver
Gold Ratio 9-Mar : 0.01997 Change : -0.00030 or -1.5% Dow in Gold Dollars : $
165.23 Dow in Gold Dollars 9-Mar : $ 156.13 Change : $ 9.10 or 5.8% Dow in Gold
Ounces : 7.993 Dow in Gold Ounces 9-Mar : 7.553 Change : 0.44 or 5.8% Dow in
Silver Ounces : 406.24 Dow in Silver Ounces 9-Mar : 378.11 Change : 28.13 or
7.4% Dow Industrial : 13,232.55 Dow Industrial 9-Mar : 12,922.02 Change : 310.53
or 2.4% S&P 500 : 1,404.16 S&P 500 9-Mar : 1,370.87 Change : 33.29 or 2.4% US
Dollar Index : 79.801 US Dollar Index 9-Mar : 80.003 Change : -0.202 or -0.3%
Platinum Price Close Today : 1,672.70 Platinum Price Close 9-Mar : 1,689.25
Change : -16.55 or -1.0% Palladium Price Close Today : 697.80 Palladium Price
Close 9-Mar : 711.25 Change : -13.45 or -1.9% The more I pore over the silver
and GOLD PRICE charts, daily and weekly, the louder those upside down head and
shoulders formations shout. I'd say that within a month, maybe a little longer,
they will be completed and ready to break out over the neckline. Meantime, we
suffer. The GOLD PRICE shuffled down $3.60 to $1,655.50. Now that doesn't look
like much of a performance, but the sellers attacked about the time New York
opened and drove gold clean down to $1,640. But gold climbed right back to
$1,664.70, leaving a clean V-reversal behind. Problem remains that gold did not
exceed yesterday's high at $1,665.60 and indeed gave a little ground. Thus
$1,640 shapes up as strong support, but $1,665 as tough resistance, and like
that little steel sphere in a pinball machine, gold seems trapped. One way or
the other this will break next week. The SILVER PRICE gave back a miserly 12
cents today to a 3257.3c close. Silver was attacked by sellers today, too, and
fought them off but also failed to advance above yesterday's highs. Like a man
trying to climb a cliff, I am watching 3150c support below, and 3300c resistance
above. 'Twas a tough week for silver and gold, but a good week for stocks and a
flat week for the US Dollar. And it's got me scratching my head. The one thing
you have to keep on doing constantly is to keep questioning your own
presuppositions. Is the chart changing primary trend, or pulling your leg? Stop
asking that and the market will one day behead you. Stocks finally broke through
13,000 this week, and shot 2.4% higher. Stock indices spake with the Voice of
Babel today, most lower but the S&P500 higher. Dow shaved off 20.12 (0.15%) to
stop at 13,232.55. S&P500 won a psychological victory this week by crossing
above 1,400, and rose today 1.56 (0.11%) to 1,404.16. What has me scratching my
head is not lice (I hope), but the Dow in Gold Dollars, my most reliable
indicator. It has been headed down since August 1999 at about G$940.50 and today
stands at G$165.28 (7.993 oz). This takes the DiG$ out above the current
downtrend line. Normally when the DiG$ bumps its forehead against a downtrend
line or even slightly crosses it, it foretells a big drop in stock coming
against gold. In other words, that bump into the downtrend line marks the spot
where stocks have spent all their strength against gold -- generally. Yet the
DiG$ rose a little higher. Could mean two things, either that the DiG$ may make
a foray up to its 200 day moving average, which has happened before and would
change no primary trend, or that the primary trend has changed. That would
change everything, since the primary trend we have been riding is "Gold and
Silver up, Stocks and Dollar down." I resist the latter conclusion, even while I
look it in the eye, because no upside blow-off has yet overtaken metals. At the
end of every bull market in every investment, a blow-off occurs. So this may be
a painful time when stocks outperform gold, even send the DiG$ to the 200 DMA,
but there's no hard evidence the primary trend has turned. Yes, I am not unaware
that multitudinous croakers from Wall Street are singing like spring peepers
that gold and silver have passed their peak, and that the US economy is on its
way to recovery. The first is wrong, the second is the triumph of hope over
reason. Meantime, we hold our silver and gold and stick with a strategy that has
brought success since 2001 and that has not yet been gainsaid by events. Tried,
but not gainsaid. US dollar index dipped lower today than I expected, and
reached the lower limit of believability. Dollar closed down 0.45% to 79.80
after a 79.68 low. Either the dollar turns around here, or the Nice Government
Men mean to send it down again for a while, and let the other Potemkin
currencies rise. The euro and yen both rose today, but let's address them one by
disgusting one. I say "disgusting" because any morally and rationally fastidious
mind must recoil in pain and horror at the monetary set up we use every day
without the least shiver or tremor of nausea. If a man from Mars should arrive,
I don't want the job of explaining the monetary system to him. He would just
look at you in disbelief and disgust, spin on his eight heels, climb back into
his flying soupbowl and spin away to some saner planet, shaking both heads. But
I digress. Euro today rose 0.67% to $1.3168. That has the look of a turnaround
upward on the 5 day chart, but to make good on that threat, the Euro must close
above 1.3200. Euro appears a bit more equivocal on a longer chart, but has in
the last 6 days smashed into its critical moving averages -- 50 and 62 day --
and turned up. However, above remains the 20 DMA at 1.3227 and a little gap.
Euro may be doing no more than filling that gap before it resumes its earthward
trajectory. The yen, having made the huge downward adjustment the Nice
Government Men wanted, today posted the first half of a Key Reversal.
Specifically, it hit a new low for the move yet closed higher on the day. It
will complete the Key Reversal if it closes higher on Monday. Remember, however,
that if it fails to close higher it will negate the Key Reversal. Close was
120.01c/Y100, up 0.18%. There you go again, Moneychanger, filled with suspicion
of the Nice Government men whose only intention is to do good. Why do you look
at that nice Round 120 Number and say automatically, "Central Bank Target
determined over rubber chicken at the monthly BIS meeting in Basel"? I am so
ashamed of myself. Y'all enjoy your weekend! 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.