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The Gold Price Has Broken Out Into a New Rally

Gold Price Close Today :1,180.10
Gold Price Close 22nd April: 1,142.30
Change: 37.80 or 3.3%

Silver Price Close Today : 18.611
Silver Price Close 22nd of April: 18.006
Change 60.50 cents or 3.4%

Platinum Price Close Today: 1,739.40
Platinum Price Close 22nd of April: 1,743.00
Change: 52.70 or 3.1%

Palladium Price Close Today: 551.55
Palladium Price Close 22nd of April: 565.50
Change: -13.95 or -2.5%

Gold Silver Ratio Today: 63.41
Gold Silver Ratio 22nd of April: 63.44
Change: -0.03 or -0.0%

Dow Industrial: 11,008.61
Dow Industrial 22nd of April: 11,134.29
Change: -125.68 or -1.1%

US Dollar Index: 81.896
US Dollar Index 22nd of April: 81.573
Change: 0.32 or 0.4%

Let's look at the week: who gained, who lost? The US dollar index probably peaked for a while this week, but showed a 32 basis point gain in spite of its weakness late in the week. Stocks fell significantly, turned back by unconquerable resistance and their own improbability. Platinum and palladium had their sails lightly trimmed, while SILVER and GOLD PRICES leapt more than 3%, proving they have begun a new rally.

Yesterday I wrote, "What would comfort my wearied apprehension? The GOLD PRICE smashing definitively through $1,170, silver topping $18.80, and the Gold/Silver ratio dropping through 62:1. That would erase all the ambiguity."

Today silver and gold met most of my requirements. The gold price rose $11.70 to close on Comex at $1,180.10. The SILVER PRICE rose 6.2c to close at $18.611, besting the last big high, although not $18.80. That will come Monday. Finally, the gold/silver ratio edged closer to 62:1, but remains 1.4 points above. Not everything, but a lot.

The gold price has broken out into a new rally. Clearly it is meeting lots of disbelieving sellers as it rises. Don't join them, because the gold price is headed much higher in May: much higher. Beneath them, the gold price must hold $1,160 and the silver price $18.50. As long as they hang on there, they're all right. This rally should raise the gold price to $1,300 or higher and the silver price to a new high above $20.68.

Buy the breakouts. Of course, you don't have to. You can wait to buy until the gold price reaches $1,300 and the silver price reaches $25.00.

The US dollar index made a higher high this week, but last three days has been struggling to remain afloat, and today sank beneath the waves at 82. Right now it's trading down 10.7 bps at 81.896. "Below 82" breaks the magic, and the morale. This week the dollar tried to break through 82 and even reached 82.71 intraday, then failed shamefully. Now it's only 65 bps above its 20 day moving average, but also remains above its 200 week moving average. Next week looks tough for the dollar and it may visit 78 before it visits 88.

This week the Dow on Monday made a new high close for the move at 11,205.03. Sounds great, huh? But . . . Next day it sank 213 points, rose 53 on Wednesday, rose another 122 yesterday, then vomited up nearly all that gain today with a 158.71 point fall to 11,008.61. S&P fared worse, losing 20.09 to close at 1,186.69.

Sorry, I must say it: Dow's five day chart looks most emphatically double-toppy. The Bridge over the River Plunge now stands at 11,000, and once the Dow breaks that the rats will begin running for the jungle. I believe y'all have seen the top in stocks for the rally that began in March 2009. As I have begged you all before I now beg again, for your own sakes, for your families' sakes, get out of stocks.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2010, 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.

Silver and Gold Prices Non Confirmation

Gold Price Close Today : 1168.40
Change: -2.90 or -0.2%

Silver Price Close Today : 18.549
Change 44.2 cents or 2.4%

Platinum Price Close Today: 1729.60
Change: 22.70 or 1.3%

Palladium Price Close Today: 550.95
Change: 11.35 or 2.1%

Gold Silver Ratio Today: 62.99
Change: -1.698 or -2.6%

Dow Industrial: 11,167.32
Change: 122.05 or 1.1%

US Dollar Index: 82.07
Change: -0.31 or -0.4%


Here I am skidding and slinging my car around in mid-road, but that Dollar Index looks like it topped yesterday. Even if it didn't what sort of strength does it show to break out (albeit slightly) to a new high for the move, a high above the last two highs, and then fall? No strength at all. Dollar index today had 30.8 basis points ripped off its back and is trading now at 82.073. Should it break that 82 fence tomorrow, it will fall at least 40 bps, maybe further.

Now y'all all think I am red-faced and tongue-tied because the Dow rose today to 11,167.32 (up 122.05). I'm not, no more than I am embarrassed by the S&P500 rising 15.42 to 1,206.78. Folks, you are watching a top in progress, and big markets turn slowly. Especially big markets that have big friends in government desperate to keep them up by any means possible. Stay out, stay away, stay calm. The weeping, whining, and whimpering will begin shortly.

In this day's trading silver and gold prices reversed their stances from yesterday. Today silver closed up strongly, 44.2c to 18.549 on Comex while gold dropped slightly, $2.90 $1,168.40. Let me clarify why this bothers me.

It's a "non-confirmation." For instance, if the Dow Jones Industrial Average rises to a new high but the Dow Transportation Average refuses to rise to a new high, that's a "non-confirmation." If the future really holds greater profitability for stocks, then those two ought to agree with each other. If they don't agree, the market is telling you, "There's a hold-up, a roadblock here, a fishhook! Look out, warning light!" On the other hand, when markets that ought to agree in fact confirm each other, that's a green light.

Silver and gold prices move together in bull markets. While they won't confirm each other every single day, in general and at turning points they must. That's why silver's failure to make a new high when gold made one in December was a massive, flashing yellow light. And look what happened.

Now from day to day sometimes silver and gold might disagree naturally, and, as I have hinted with all the subtlety of garlic breath, the NGM like to intervene in silver to drag gold down. So one day or another doesn't necessarily constitute a non-confirmation. Today's action seemed to me to gainsay yesterday's non-confirmation. Silver bounced up to its last high and made up for lost time yesterday. Gold stuttered and stumbled because it is right on the verge of a big jump. It's to be expected that a breakout like that would attract a lot of short sellers who think that this time gold will fail again.

What would comfort my wearied apprehension? Gold smashing definitively through $1,170, silver topping 18.80, and the Gold/Silver ratio dropping through 62:1. That would erase all the ambiguity.

Now I've talked so much back and forth y'all have probably lost my point: gold and silver looked strong today and are slogging through a break-out that will carry gold to $1,300 and silver to a new high above 2068c, unless some terrible crisis lurketh all unforeseen and unsuspected. Buy gold and silver.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2010, 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.

The Gold Price has Broken Through $1160

Gold Price Close Today : 1171.30
Change: 9.60 or 0.8%

Silver Price Close Today : 18.107
Change -1.2 cents or -0.1%

Platinum Price Close Today: 1706.90
Change: -10.70 or -0.6%

Palladium Price Close Today: 539.60
Change: -11.40 or -2.1%

Gold Silver Ratio Today: 64.69
Change: 0.573 or 0.9%

Dow Industrial: 11,045.27
Change: -213.04 or -1.9%

US Dollar Index: 82.33
Change: 0.18 or 0.2%

One reader asked me to comment on the congressional Goldman-Sachs hearings. Okay, here's my comment: theater, pure theater. Standard cover-up procedure. A bunch of senators who know nothing about a very complicated business appear to ask piercing questions to arrogant Goldman Sachs traders and executives. Did you know the mortgage market would tank? Huh? Us? Why, why, we were just selling what people wanted. Meanwhile they have GS interoffice emails smirking about what doomed trash these CDOs were.

But watch the walnut with the pea under it! This is merely theater to build momentum to pass (what my friend Al Thomas calls) the Financial Deform bill, 1200 pages nobody will read. They will only discover later that it was loaded with treats and goodies that benefit whom? The Goldman Sachs of the world.

Get this straight, folks: the Wall Street establishment owns and runs the US government for its own benefit. Any idea that the US government answers to taxpayers and voters expired 150 years ago.

Oh, what a stinky day! Something just doesn't smell right here. I don't know if it's a financial catastrophe lurking around the corner or merely the Nice Government Men up to their usual tricks, but it all just doesn't quite meld.

Main chance says the US dollar index has broken out to the upside. Right now its trading at 82.327, up 18.1 basis points. However, this is one of those not-yet-clear situations, so dollar could be faking us all out preparatory to plummeting to the center of the earth. But the main chances says it will rise higher.

Dow Jones Industrial Average today rose 53.28 to 11,045.27 (wink! Wink!). S&P skittered up the ladder 7.65 points to 1,191.36. Nasdaq Comp & other indices were flat. While it's always possible stocks might raise their head one last time, it's doubtful. Down is the trajectory, down, down, down.

Heard something titillating from a wholesaler friend who does a lot of business in Europe. Seems that the Greek crisis, which I providentially misspelled as "Greed" yesterday, is driving European investors out of the Euro (rhymes with "burro") and into gold. Thus European wholesalers have no gold coins to send to the US. That hasn't yet raised premiums on gold coins, but if it keeps up it will.

This day's trading in gold leaves the mind in a quandary. It rose $9.60 to close on Comex at $1,171.30, but now in the aftermarket is trading $1,165.90. Chart has a sort of choppy corrective look the last two days. Still, gold has broken through $1,160 resistance and marched ahead, so it certainly ought to keep climbing. But why today's weakness? Natural, or induced by the NGM who don't want to see gold shooting out of sight in a brewing crisis? Who can tell any more? Might be the market's stomach churning over some crisis foreseen.

The SILVER PRICE performed poorly today, not counting its heroic defense of 17.80 again. Reminds me of somebody in a swimming pool trying to hold a basketball underwater. Wait! Don't say it, don't say it! No, can't help it: looks like some NGM might be selling off silver trying to scare people out of gold. (I hate it when my lips do that, just take off and speak without asking me.)

Staying above 18.00 after being driven to 17.80 on Friday and today in fact is strong, and probably completes the correction from Friday's high. Of course, if silver closed lower than 17.80, that would gainsay my interpretation, but as long as it stays above 18.00 'twill be all right. If gold takes off, silver will not lag far behind. What worries me most is that silver's high Friday was lower than the 18.60 high on 12 April, while gold's analogous high was higher. This needs to be cured quickly, or it will cause trouble.

On this day in 1881 escaped from the jail in Lincoln County, New Mexico Billy the Kid, killing two deputies on guard. On 14 July he was ambushed and killed by Sheriff Pat Garrett.

On this day in 1770 Captain James Cook in Endeavour landed at Botany Bay in Australia. His men celebrated by throwing another kangaroo on the barbie. Cook was the first European to reach Australia's eastern coast.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2010, 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.

Today's Gold Price Move Qualifies as a "Break-Out"

Gold Price Close Today : 1161.70
Change: 8.20 or 0.7%

Silver Price Close Today : 18.119
Change -21.8 cents or -1.2%

Platinum Price Close Today: 1717.60
Change: -28.50 or -1.6%

Palladium Price Close Today: 551.00
Change: -16.25 or -2.9%

Gold Silver Ratio Today: 64.12
Change: 1.209 or 1.9%

Dow Industrial: 10,991.99
Change: -213.04 or -1.9%

US Dollar Index: 82.06
Change: 0.58 or 0.7%

Behold! Let us muse upon the free-ness of markets, the honesties born of government regulation, and what a cesspool of corruption the reality is. I am thinking, of course, about Options Expiry. Lo, what a coincidence. Every time options expire, "Somebody" trashes the market so that the most heavily traded options expire worthless.

Ponder the SILVER PRICE: if most of the May options (which expired today) were written at $18.00, and another big clot of them at $18.25, then the options writers wouldn't want
silver futures to close at $18.30. If they can get together and sell enough futures contracts to drive the price down, not forever but just for a single day, then the options expire worthless and they pocket the premiums paid by the gullible public.

Sure enough, today right on cue they drove the silver price down to $1806, although it closed at $18.119. Now, that wasn't perfect from their viewpoint -- a $17.99 close would have been perfect, but every penny move in silver futures translates to $50 value for an in-the-money call option. Perform the mathematics, and you'll see that options writers have a powerful incentive to drive down prices, only temporarily, on Options Expiry day.

Therefore, we can explain the odd concatenation of events, where the GOLD PRICE rises $8.20 but silver falls 21.8c to close on Comex at $18.119 then in the aftermarket the silver price climbs to $18.22 (and gold to $1,170.)

Now, having coughed up that bone in my throat, let's look at today's trading. Although today was Options Expiry, the gold price climbed $8.20 to $1,161.70, perhaps as a result of Greek government debt being downgraded to "Junk" status. The press into gold was simply too mighty to stop.

US Dollar Index drew nigh to 81, then jumped 57.9 basis points to 82.06 right now. Yet again, the wooden stake was pounded into the heart of the myth that gold's price moves in lock-step opposite the dollar. Not when people are scared, it doesn't, because they are looking for some alternative to the dollar.

Today's rise to 82.06 (81.179 high) brings the US Dollar Index back to that 82+ resistance that has twice before stopped the dollar. Chances are it will punch through this time, and continue rising. If it does not, then the dollar will write "Cancelled" over any rally for a long while. The path will not remain a secret; tomorrow the market will shout an answer.

STOCKS today finally succumbed to gravity. Note that all the gurus, analysts, talking heads, TV opinionaters, and all the whole media chattering class will be pointing the finger at S&P's downgrading Greed debt as the "cause." Right -- the same way wet streets "cause" rain. True, the downgrade happened coincidentally to stocks' falling, but to assume that one caused the other is to fall prey to the post hoc ergo propter hoc logical fallacy ("this happened after that therefore on account of that"). Rather, as I have been admonishing y'all for many days, stocks had already reached their extremely overbought top. They were a statue on a rotten pedestal, waiting for the first wind to topple. So a wind blew: the downgrade, but that didn't really cause stocks to fall. At most it only precipitated a fall that was ready to happen anyway.

So how bad was it? Dow fell 213.04 to 10,991.99. S&P500 was hit even harder, dropping 28.34 to 1,183.71, down 2.34% versus the Dow's 1.90% fall. For the Dow 11,000 was support, and now that has been ruptured. Next support materializes at 10,800. Dow today fell through its 20 day moving average (11031.90), first harbinger of a downturn. With markets you never know what will happen next -- especially with so many fingers manipulating markets today -- but today's break clearly fractures stocks' uptrend and turns them down.

What about silver and gold? Today's gold close was especially strong, considering the headwinds of Options Expiry and a strongly rising dollar. Today's move qualifies as a "break-out", so gold ought to gain tomorrow. Silver will tag right along, and lap gold.

If you've been waiting to buy, today you got your signal.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2010, 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.

The Gold Price is Far More Likely to Rise From Here

Gold Price Close Today : 1153.50
Change: 0.40 or 0.0%

Silver Price Close Today : 18.337
Change 14.5 cents or 0.8%

Platinum Price Close Today: 1746.10
Change: 8.10 or 0.5%

Palladium Price Close Today: 567.25
Change: 5.75 or 1.0%

Gold Silver Ratio Today: 62.91
Change: -0.479 or -0.8%

Dow Industrial: 11,205.03
Change: 0.75 or 0.0%

US Dollar Index: 81.23
Change: 0.17 or 0.2%

The GOLD PRICE on Comex rose 40 cents to close at $1,153.50 and is trading now at $1,154.10. Friday's $10.80 jump lifted gold to $1,160 resistance again. 'Twas a strange chart, Friday's. The gold price broke $1,142.50 and levitated straight up like Captain Kirk heading for the Enterprise. Today's high was $1,158.80 but gold spent most of its day trading sideways. Must not break $1,140.

Sorry, I don't like double closes. Although in the past couple of months half of them have led to higher prices and half to lower, they still make me nervous. Nonetheless the gold price is far more likely to rise from here. That's almost a given. All indicators and moving averages support higher gold prices, but there's a certain want of enthusiasm that keeps buzzing at my attention like some annoying fat blue bottle fly. A close above $1,160 will cure my uneasiness.

Since February the SILVER PRICE has been climbing in regular stair steps -- bold, strong pattern. Today it rose 14.5c to close at $18.337 on Comex, and now is trading at $18.32, but the same discrepancy appears in silver that I alluded to above in gold.

Silver's big roadblock is $18.60, and above that the December high at $18.89. The silver price must stay above 18.10. Trend in force is up, so the silver price ought to keep climbing tomorrow.

What a photo op for stocks! Almost every other index closed down, but the Dow closes up . . . 0.75. No, that's not a typo. The Dow climbed as high as 11,258.01, but couldn't digest that extra 53 points.

Stocks are as overbought as California real estate, as overhyped as Gulf Coast condos. Stocks have risen the last eight weeks running, not to mention eight out of the last eleven weeks. The RSI looks like January 2000 and the MACD has frozen at permanently overbought. Have stocks repealed gravity, with the help of the NGM? Don't bet on it. Can't go on forever, just stay out and be patient. When the wailing and weeping begins, you will not be among the mourners.

Whoa. That US Dollar index rally not only failed to break out on Friday at 82, but also made the first half of a key reversal, namely, rising to a new high for the move only to close lower the same day. Today the Samolean painted the second half of that key reversal with a second day's lower close. Right now the dollar is trading at 81.23, down 17.3 basis points. Wait, wait, behold! the Dollar has also drawn a double top just above 82. Tomorrow the dollar should follow through by closing below its 20 day moving average (now 81.06). Once it opens that trap door at 81 it will slid to 80 fast as a roach skitters away when you flip on the kitchen light.



Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2010, 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.

Once the Gold Price Closes Through the Last High at $1,161, 'Twill Run Fast

Gold Price Close Today : 1,142.30
Gold Price Close 16th April: 1,136.30
Change: 6.00 or 0.5%

Silver Price Close Today : 18.006
Silver Price Close 16th of April: 17.664
Change 34.20 cents or 1.9%

Platinum Price Close Today: 1,743.00
Platinum Price Close 16th of April: 1,690.30
Change: 52.70 or 3.1%

Palladium Price Close Today: 565.50
Palladium Price Close 16th of April: 1,690.30
Change: 52.70 or 3.1%

Gold Silver Ratio Today: 63.44
Gold Silver Ratio 16th of April: 64.33
Change: -0.89 or -1.4%

Dow Industrial: 11,117.29
Dow Industrial 16th of April: 11,018.66
Change: 115.63 or 1.0%

US Dollar Index: 81.03
US Dollar Index 16th of April: 80.832
Change: 0.74 or 0.9%

The STOCK market today has to leave a wry smile on your face. Dow opened down and stayed there till noon when it began a slow climb to unchanged. Then at 3:30, with just 30 minutes left for the day, it climbed above unchanged to close up 9.37 at 11,134.29. S&P500 rose 2.73 to 1,208.67. Not up much, but up still for propaganda purposes.

Some readers have been nipping at my heels about the continuing gains in stocks. I don't mind, I've been nipped by champions before, but I believe that the longer your perspective, the better your view, so I want to bring y'all up on some facts so that y'all can understand why I view stocks with such a jaundiced eye.

In any market, the investor's goal is to gain value. However, when the currency unit (not to mention markets) is being manipulated and inflated, how can you value anything? It's like shooting skeet off the back of a bass boat in a storm. Therefore, we need a gauge for investment performance that gives a reliable measurement. That's why I measure the performance of stocks in silver, or in Gold Dollars (a gold dollar is 0.048375 troy ounce).

In August 1999 the Dow in Gold Dollars peaked at G$925.42 (44.767 ounces). Today, it stands at G$201.49 or 9.747 troy ounces, so stocks have lost 78.2% or about 4/5 of peak value against gold. They will continue to drop until one to two ounces buys the whole Dow, or, in other words, until stocks lose another 80% to 90% of present value. That's the long term perspective on stocks.

Shorter term, the DiG$ bottomed at G$145.37 (7.032 oz) on 6 March 2009. Since then it has risen to G$201.49 (9.747 oz). That's a rise of G$56.12 or 2.715 oz, a 38.6% gain. Correcting the fall from G$318.84 (15.424 oz) where it started 11 September 2008 to its end at G$145.37 (G$173.47 or 8.392 oz), that a rise of only 32.3%. Sounds strong?

Not so fast, friend. Whichever way you want to view this correction, it is normal and routine. Worse yet, it is bound to fail, taking stocks down again. So it's not a very sound idea to judge stocks' performance against gold, silver, or the paper dollar, by the last 12 months. And it's never a good idea to invest for the next 12 months expecting a repeat of the last.

I'm not clever enough to capture every zig & zag of any market, so I have to follow the first fundamental rule of investing: always invest with the primary trend. Not flashy, but over time, it works.

The US DOLLAR worked through 81.30 and jumped 41.2 basis points to 81.573. That closes it right on the short term downtrend line from March. The RSI & MACD are hinting higher prices, but the test comes tomorrow. Can the dollar punch through that trend line? A close tomorrow above 81.90 sends the dollar climbing again.

This morning at opening bell someone body-slammed gold with selling and quickly pushed it down to $1,131.55. After a couple of hours' consolidation it bounded above $1,140 and has traded sideways since. Thus "down $5.90 to close on Comex at $1,142.30" doesn't tell the whole tale. Gold is much stronger than that lower close appears.

The GOLD PRICE remains above its 20 day moving average, and the 20, 50, and 200 DMAs are all rising. Last week's shakeout actually helped strengthen gold for the next rise. As long as gold doesn't close below $1,130 it is still preparing itself for a rally. Should close the week higher tomorrow. Once the gold price closes through the last high at $1,161, 'twill run fast.

SILVER shared gold's fate today. Overnight it sank slowly to 17.90, then the US market opened and Some Big Seller appeared and knocked gold to 17.76. No matter, silver consolidated, then rose to close on Comex down only 6.7c to a photogenic 18.006. Silver has not violated the underlying uptrend, so it remains in that trend. However, 18.10 is blocking the path of silver's progress. Silver must not close below 17.60.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2010, 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.