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Gold
Price Close Today : 929.10
Gold Price Close June 20th: 900.40
Change: 28.70 or 3.2%
Silver Price Close Today : 17.57
Silver Price Close June 20th: 17.387
Change: 18.30 cents or 1.1%
US
Dollar Index Today: 72.299
US Dollar Index June 20th: 73.053
Change: -0.754 or -1.0%
'Twasn't a good week for stocks & the US
Dollar. Mercy.
The US DOLLAR INDEX fell below its 50 day moving average (DMA, now 72.91) and
rests now at 72.299, down 75 big basis points from last week. Now it is
working on reaching the May low at 71.90. Poor Helicopter Ben Bernanke! Nothing he is trying works!
What's a central banker to do? He'll be laughed out of the monthly suppers at
the Bank for International Settlements.
Oil climbed over $140 today. Does anybody in Washington realize that oil over
$140, the Dollar Index at little more than half its 2002 rate, gold nearing
US$1,000 an ounce, and the stock market threatening to return to 9,750 looks
like all the pieces are falling apart, all at once?
The really big down moves in stocks haven't yet taken place. Between 11,750
and 10,680, there's no support, just air. As I have urged since memory runneth not to the contrary, swap stocks for silver &
gold.
In the last two days the GOLD PRICE has gained US$49.10 and run slap
up against the Big Resistance, the last high at US$928. Does today's
marginally higher close constitute a genuine breakout? Let's see on Monday. It
must gain on Monday, but cannot fiddle around here at this level. I expect
higher prices, next week.
The SILVER PRICE has gained $1.07 in the last two days, but has
(unlike gold) not reached its last high at $18.24. The silver price must
clear that hurdle before we can pronounce the correction finished. I expect
we will see that within the next 8 trading days.
For silver and gold prices, this week was a great show of strength. Both
recovered from bad falls and vicious attacks, and rose to levels ready to
challenge old lows. Meanwhile the US dollar can't hold on, so everything is
in place for higher silver and gold prices.
My friend BL, Technician Extraordinaire, rebuked my anxiety about the
gold/silver ratio by reminding me that in strong rallies, gold usually leads
silver. Therefore, the lagging gold/silver ratio presents no problem to a
metals rally. BL also reminded me of something else, that this leg down in
the ratio would be a "3 of 3", that is, a third wave down in a
bigger third wave down. Me, I gave up on Elliot Wave analysis years ago as a
subject like ballet, which I simply cannot parse. But BL loves Elliot Wave,
and he sees a "3 of 3" coming in the ratio, which means (1) a huge
move down in the gold/silver ratio and (2) a huge move up in silver and in
gold prices.
Franklin Sanders
www.the-moneychanger.com
Reprinted
with permission from The Moneychanger. Franklin Sanders
lives on a farm in Middle Tennessee by choice, deals in physical gold &
silver, and has been writing and publishing The Moneychanger for nearly 26
years. In 1993 he wrote Silver Bonanza for Jim Blanchard. Last year he
published "Why Silver Will Outperform Gold 400% and & The
Professional Trading Secrets That Will Make the Most of Your Silver &
Gold Investments," still available at www.the-moneychanger.com/order/publications.html.
You can sign up for Mr. Sanders' free daily e-mail
commentary on gold & silver at www.the-moneychanger.com, and download your free portfolio calculator to
keep up with your gold and silver investments.
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