Gold price | The <b>Gold Price</b> Closed Down $1.90 at $1243.70 |
- The <b>Gold Price</b> Closed Down $1.90 at $1243.70
- <b>Gold Price</b> Slipping Again While Silver Sees Further Risk :: The <b>...</b>
- In the Long-Term, <b>Gold Prices</b> will make Substantial Gains | Gold <b>...</b>
| The <b>Gold Price</b> Closed Down $1.90 at $1243.70 Posted: 02 Jun 2014 04:15 PM PDT
Far's the SILVER PRICE is concerned, it has fallen to long time support around 1865 - 1890 cents. Volume has dropped as this decline has proceeded (think of volume as the gas gauge on a move - more it drops, less fuel the move has left.) Indicators look rotten, but they always do at bottoms. Still, no concrete sign of a tergiversation yet. The GOLD PRICE might stop here or at last-low-support about $1,237.50, maybe a buck or two lower. Or it might re-visit $1,180. Either way, it won't be long. Behold, let us ponder the GOLD/SILVER RATIO. Go throw an eyeball on the chart. Right strange, ain't it? It's a long rising wedge that is cycling very regularly at 14 - 21 days, sort of laddering up the bearish wedge. This suggests a dead market that is just plumb wore out. Next move'll be a big-un. Because the top of that wedge, now about 68.5, is so high, odds favor a fall out of that wedge. Speaking of volume, it has clean dried up on the gold price. Wonder they even keep the market open, no more trading than it's doing. I read somewhere credible that the drop on Options Expiration Day was precipitated by huge sales. I have no trouble believing that, since a gold plunge guaranteed big savings for those who had sold gold call options. Y'all just be patient, and look to buy either on a turnaround (Close above $1,280 or 1950c) or a sudden plunge. I'd buy that plunge, because I think if we see one, silver and gold prices will reverse immediately. Y'all ever see somebody drop a 50 lb. watermelon off the roof of a three story house? From the time that thing is launched into the air it's as stable as can be, just looking at the watermelon. If you ignore the approaching terra firma, that watermelon looks just fine, but when it hits the ground -- oh, my! Watermelon everywhere! So it is with today's markets. They appear quite stable, but this is not the real world. The watermelon has been thrown off the roof -- we're just waiting for it to hit the ground. Stocks looked bright, cheery, and healthy as a three day dead mackerel today. Dow jumped up 26.46 (0.16%) to a new high at 16,743.63 but the S&P500 hopped only 1.4 (0.07%) to a new high at 1924.67. Other indices were all down. Reminds me of watching a family all arguing with each other, yelling and gesticulating and shaking their fists. They ain't going nowhere together. Dow In Gold and Dow in Silver both rose today, the Dow in Silver to a new high for the move (I'm getting right tired of writing that). Dow in Silver rose 5.25 to (0.59%) to 893.52 oz (S$1,155.26 silver dollars) and is bumping hard on the overhead boundary of the rising wedge pattern. (Reminder: rising wedges point up on the chart but usually resolve DOWN on the breakout.) Still looking for a top no higher than 912 oz ($S1,179.15). Dow in gold edged up 0.77% to 13.47 oz (G$278.45 gold dollars), about where it was when the Great Depression started. Not as sure about a target on this one but looks like its aiming for a double top with the 13.80 oz ((G$285.27) December 2013 top. That sorry, scabby US dollar index pulled itself together sufficiently today to rise 24 basis points (0.3%) to 80.68. That pulls away from the 200 day moving average (80.47) and gives the US dollar index the embryo of a shot for 81.50. Clearly, though, the currency worm hath turned and it's the dollar's turn to gain for a while against the other two scrofulous, scabby central bank fiat currencies, the yen and euro. Speaking of the Franken-currency, it sank today upon growing speculation that at its policy meeting this week the European Central Bank criminals will engage in some kind of easing (money printing) or lower the already microscopic 0.25% interbank lending rate even further. Bugs Bunny could do a better job managing a currency. The euro lost 0.28% to close at $1.3598 today, back beneath the 200 DMA and eyes firmly fixed on the abyss. Japanese yen gapped down below its 20 and 50 DMAs today, and closed below the uptrend line a-slanting up since early April. Looks as chipper as cholera. Dropped 0.6% to 97.68 cents/Y100. Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger © 2014, 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 or 18 ounces of silver. or 18 ounces of silver. US $ and 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.  | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| <b>Gold Price</b> Slipping Again While Silver Sees Further Risk :: The <b>...</b> Posted: 03 Jun 2014 03:50 AM PDT
By: GoldSilverWorlds
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| In the Long-Term, <b>Gold Prices</b> will make Substantial Gains | Gold <b>...</b> Posted: 03 Jun 2014 08:00 AM PDT The recent tight trading range in gold was broken last week to the downside as prices of the yellow metal fell by almost 3% to a 16 week low. The price of spot gold was weighed down by speculative selling on Comex as stop-loss orders were triggered, and there was also an element of book squaring ahead of month end as well as selling by commodity funds. Last Tuesday prices fell by 2.2% – the most in a single-day this year followed by another 1% fall on Friday sending prices to their lowest level in four months as investors ploughed money into equities and bonds, ignoring any bit of negative news about economic growth. And, while violence in Ukraine persists, investor sentiment towards gold has waned somewhat after Russia's President Vladimir Putin expressed willingness to work with the new government in Kiev. Under normal circumstances, the release of bad Growth Domestic Product (GDP) figures would have induced some selling in equities, but almost every time there is negative news, particularly in the US the stock market moves higher. Last week, when the latest US GDP figures were released, showing a 1% decline, one could have expected to see some selling. But, shortly after the news U.S. Federal Reserve official Jeff Lacker said that that GDP in the second quarter 'will bounce back.' And, equities rallied! It seems that there is no end in sight for a top in these markets. And, as the US Fed together with other central banks manipulate the price of gold lower they push equities higher. Soon just about every individual will be long and up to their eyeballs in margin debt. And, this can only end badly. However, in the meantime, the US Fed via their bullion banks will continue to supress gold prices because it gives more substance to the dollar and the bond market. And, as prices fall countries such as China and Russia will accumulate more of the yellow metal. The results of the recent EU parliamentary elections showed that many people are extremely discontent with asystem of government that is directed from Brussels, in particular individuals in France and England. People are alert to the loss of freedom and destruction of the economic future by Brussels and are not happy with the growing socialism and totalitarianism in the region. Marine Le Pen's Front National swept 73 electoral departments, while President Francois Hollande's socialists were reduced to two. She vowed to confront Europe's leaders with a stark choice at their first meeting: either to work with France for a "sortie concertee" or coordinated EMU break-up, or resist and let "financial Armageddon" run its course. "The euro ceases to exist the moment that France leaves, and that is our incredible strength. What are they going to do, send in tanks?" she said. "The people have spoken; our people demand one type of politics: they want French politics by the French, for the French and with the French. They don't want to be led any more from outside, to submit to laws [by outsiders]… The sovereign people have proclaimed loud and clear that they want to take back their destiny into their own hands… We must build another Europe; a Europe of free and sovereign nations and freely decided cooperation. Tonight is a massive rejection of European Union. If Germany has become the economic heart of Europe, through the incompetence and weakness of our leaders, then France has been and will be the political heart of Europe. What has happened in France signals what will happen in all Europe countries: the return of the nation. To all those French who voted for us, I say that the battle for the greatness of France should unite in the rediscovered love of our country…" Marine Le pen said. With the exception of Germany, the elections were a broad repudiation of EMU austerity. The two dominant parties of the post-Franco order in Spain saw their share of the vote drop to 49% from 80% last time, with the Podemos radicals coming from nowhere four months ago to win 8% with a campaign to "stop Spain being a colony of Germany and the Troika". The austerity coalition that has pushed the Netherlands into debt deflation crashed to 21%. The ruling enforcers of EU-IMF Troika policies fell to 31% in Greece and 28% in Portugal. Europe's leaders are counting on recovery to rescue them, relying on the rest of the world to generate the necessary demand, but creating none itself. But, it seems that the best that can be hoped for is 1% growth in southern Europe through the decade. This will not provide enough growth to solve the high unemployment rate or the high debt levels. Both Marine Le Pen's Front National and Nigel Farage's UKIP parties were against the ECB policies and the EU. This has major implications for the world economy, currencies, and also for gold. Furthermore, you have a tremendous amount of unhappy youth in countries like Spain, Greece and Italy. In some cases the youth are experiencing 60% unemployment. That's a powder keg waiting to explode. If this situation continues, it will eventually lead to massive protests and unrest. In the meantime, the debt keeps getting piled on top of debt. The solution by the central planners is just to print more money and throw money at the problem. Soon the ECB may have to reduce interest rates almost to zero. We might even see negative interest rates. The ECB is getting desperate to do something to get the economy going and to try to stop deflationary forces from taking hold. But so far everything they are doing is not working. The price of gold for most of May have hovered around the $1300 level as market participants weighed tensions in Eastern Europe against an improving economic situation in the US. De-escalation in Ukraine appears to have tipped the scales. But, as gold prices broke through certain support levels, traders using the paper market on Comex were able to push prices lower. I still maintain that gold prices will gain significantly in the long-term due to the expansionary monetary policies of the major central banks and currency debasement. And, as prices fall, I do not recommend anyone to sell their physical gold and instead to use these price dips to add to their holdings.
The price of gold broke out of the recent range between $1280/oz. and $1320/oz. the next support level is $1240/oz. |
Gold: Slipping again
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