Gold price | Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Closed at $1,287.60 |
| Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Closed at $1,287.60 Posted: 09 May 2014 07:58 PM PDT
Friday the GOLD PRICE lost ten cents [sic] to close at $1,287.30 while the SILVER PRICE lost 1.7 cents and closed Comex at 1907.7c. Volume has dried up. That suggests both waning interest in metals and waning strength in the decline. GOLD/SILVER RATIO rose to 67.479 ounces of silver equal to one ounce of gold (good time to swap overvalued gold for silver). Backing away from the chart a little, since January the GOLD PRICE has formed a roughly even-sided triangle, the infamous equivocal equilateral that can break out either way. Since the April high gold has formed a much tighter long triangle. Those always indicate a market "coiling up the spring" for a big move, but with their tight lips such triangles whisper not whether it will break up or down. Only two interpretations stand up. Either silver and gold will undergo one last spike down to new lows for the 2011-2013 correction, or the double bottoms of June 2013 and December 2013 will hold and therefore we have already seen the lows. Until proven otherwise by lower lows, I will continue to assume that the lows have been seen, and the next big moves will be skyward. However, I continue looking nervously over my shoulder at the $1,434 and 2512c peaks in August 2013. Eventually metals must conquer these heights to prove beyond quibble that they have turned around. The weekly silver and gold price charts are positive but not speaking in a very loud voice. Gold is dancing back and forth a above and below its downtrend line from the August 2011 high. Silver is copying that cat. The more things change, the more they remain the same. NO FUNDAMENTAL CHANGE HAS BEEN MADE IN THE FINANCIAL and MONETARY SYSTEM. Chew on that, digest that. Nothing has been fixed, nothing reformed, none of the criminals who caused the 2008 and earlier crises (for 100 years) removed. If the cause remains, the outcome will remain. Inflation, the cause, remains, so the outcome, economic turmoil, panic, decline, and the death of the inflated currency will remain. Let not the reigning complacency fool you. Nothing has changed, impoverishment awaits. Thursday and Friday the US dollar unexpectedly and undeniably reversed. This week stocks continued to struggle and wallow sideways, striving but hard put to make gains. Gold and silver fell back, but have not broken recent support or improved recent strength. Looking closer alters the picture. Stocks rose for the week but remain locked in a broadening top (Dow) or diamond (S&P500). These can also prove to be consolidation rather than topping patterns, to add further to your confusion. Dow rose 32.37 (0.2% to 16,583.34, up 70.45 or 0.4% for the week. Not up much, but up. S&P500 rose 2.85 (0.15%) on Friday, but lost 2.66 points or 0.1% for the week. It's never a happy sign when markets that ought to agree in family harmony gainsay each other. This wallowing, laboring action has the feel of a top, rolling over. Stocks will probably yet, soon, shoot to new marginal highs. In both metals and stocks I am impressed that nobody has much interest or enthusiasm, but that's only my impression and hardly measurable. Dow in Gold and Dow in Silver aren't singing precisely in tune either. Dow in gold closed at 12.86 oz (G$265.84 gold dollars) and is trading sideways into a tightening rising flat-topped triangle. This suggest the Dow in Gold will surge to one last high, doubling the December high but lower, as stocks make new marginal highs while gold remains weakly flat or drops lower. If the DIG breaks out upside this way, 'twill happen next week. Dow in silver rose 0.22% to 864.84 oz (S$1,118.18 silver dollars). It continues to build out a bearish rising wedge, pointing to a top soon around 880 - 890 oz (S$1,137.78 - $1,152). Bottom line of these details is that a top is coming soon in the Dow in Gold and Dow in Silver which will change the trend from stocks gaining against metals to metals gaining against stocks. As I have warned y'all in the past, stocks' rise in the past few years has been built, and today rests on, inflation and not economic strength. Just like an alcoholic, they can keep up a front for a while, but one day they show up drunk at work, and the deception ends. Big news this week was the US dollar index' tergiversation. Thursday it hit a new low for the move (78.93) but instead of plunging headlong into the abyss it spread its wings, performed an Immelmann, and flew in the opposite direction. Friday it strongly confirmed a key reversal by rising 45 basis point s(0.57%) to 79.93, clearing its 20 (79.73) and 50 (79.88) day moving averages. The strength of this reversal was mirrored in the weakness it occasioned in the euro and yen. Thursday the euro experienced a key reversal in the opposite direction, reaching a new high for the move ($1.3993) and collapsing, crumpling to close below its 20 DMA ($1.3841). Friday it gapped down, losing another 0.5% to close $1.3770 and left behind an unarguable failure and trend reversal. Well, unarguable in any unmanipulated market, but we all know that currency markets are NOT free markets. We can therefore conclude that the Nice Government Men and Central Bank Criminals have come to the conclusion that they cannot, for the nonce, allow the euro to appreciate more and choke off Germany's export-driven economy, or allow the dollar to sink to the molten mass at the earth's core. What a favorable time to crush and punish both dollar shorts and euro longs! Smack em all in the teeth and teach 'em a lesson. The yen hath not partaken quite so boldly in rising at the dollar's expense, so did not reverse as boldly. It lost 0.22% Friday to close 98.17 cents/Y100, right at the top of the boundary of the downtrend it had been trying to escape. For a while, at least as long as it suits the criminal conspiracy of the central bank criminals, expect the dollar to rise. Their tactic is always to depreciate slowly with random raids on shorts and longs so no panics are precipitated -- as cowboys herd cattle, keep 'em moving without any stampedes. Moooo-ooooo! Many thanks for your prayers on my wife Susan's account. Her eye surgery was over before I could finish my cup of coffee. This morning she woke up and looked up at our clerestory window and proudly announced, "I can see the blooms on the tulip poplar!" Bringing her home from Nashville yesterday I drove down Highway 31A from Franklin to Chapel Hill to pick up some meat from our processor. Tennessee is so charming in her spring dress that poems started popping into my head. So one of Susan's eyes is fixed, but Monday she has an echocardiogram to see what's bothering her heart. Please continue to pray that God would heal her. Y'all enjoy your weekend! 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.  | |||||||||||||||||||||||||||||||||||
| Do 2 Year Treasury Rates Guide the <b>Gold Price</b>? | Max Keiser Posted: 08 May 2014 05:19 AM PDT Economist David McWilliams examines U.S. Treasury rates and the gold price in his daily newsletter. Click Here for your discounted GoldCore subscription to Global Macro 360 Today's AM fix was USD 1,291.25, EUR 926.03 and GBP 761.13 per ounce. Gold fell $18.40 or 1.41% yesterday to $1,289.40/oz. Silver slipped $0.25 or 1.28% to $19.31/oz. After rising to near its highest level in three weeks early yesterday at $1,315/oz, gold experienced its biggest intraday price fall in three weeks yesterday, falling to $1,290/oz by close of New York trading. Silver likewise retreated from the $19.70/oz level to the $19.20/oz range. The price weakness in the precious metals was attributed to apparent de-escalation of tensions in the Ukraine conflict after Russia promised that military exercises near the eastern Ukrainian border would be scaled back, and Putin called for separatists in the south-east of Ukraine to postpone an independence referendum planned for May 11th. Gold and silver prices were also undermined by remarks from Janet Yellen, the Fed Chair, who appeared yesterday before the U.S. Congress in testimony about the U.S. economic outlook. While Yellen didn't say anything unexpected and reiterated that short-term interest rates would remain near zero, her confirmation that the U.S. economy would still be supported was interpreted as a positive for risk assets. The Governing Council of the European Central Bank meets today in Brussels to decide whether to alter their closely watched benchmark and deposit rates. Consensus economist estimates indicate no changes, with the benchmark rate expected to stay at 0.25% and the deposit rate to stay at zero. Gold is now trading again in a very narrow trading range below $1,300/oz, and the market does not seem to want to commit to push the gold price significantly in any one direction, with investors appearing to be waiting on the sidelines. Global Macro 360
With the U.S. Dollar Index (DXY) down near a 2 year low and 10 year bond yields touching 2.6%, McWilliams highlights that on previous occasions when the USD has touched these levels, gold investors have got burnt, since their expectation that the USD would weaken further, and that the gold price would rally, did not materialise. Likewise, there is no real conviction that 10 year yields will fall below 2.6%. Indeed, economic polls suggest that the 10 year yield is expected to rise for the remainder of this year, as is the shorter 2 year yield. Last time short-term rates spiked, the gold price fell through $1200. This fear of rate hikes is likely to be keeping bullish gold sentiment on the sidelines.
Note: The U.S. Dollar Index (DXY) measures the dollar's performance against a basket of six major currencies. GoldCore has partnered with Global Macro 360 to offer GoldCore readers a discounted 6 month or yearly subscription membership to David McWilliam's daily market insights. Follow Global Macro 360 for more in depth economic analysis on the global macro economy, including the gold price. Click Here for your discounted subscription to Global Macro 360 |
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