Future of Gold and Silver Price As on 25-08-2009

Like a Spring, the Gold Future Price is Coiling for a Break Out

Gold Future Price Close Today : 942.30
Change: -10.90 or -1.1%

Silver Future Price Close Today : 14.195
Change: -3.1 cents or -0.2%

Pliatinum Future Price Close Today: 1237.80
Change: -18.70 or -1.5%

Palladium Future Price Close Today: 283.75
Change: 2.50 or 0.9%


Gold and Silver Future Price Ratio Today: 66.38
Change: -0.915 or -1.4%

Dow Industrial: 9,509.28
Change: 3.32 or 0.0%

US Dollar Index: 78.22
Change: 0.18 or 0.2%

Sorry to keep starting every day with the scrofulous US DOLLAR, but right now that's where the action is. After breaking through 78.33 support on Friday, the dollar recovered 18.1 basis points today, rising to 78.221. Y'all will immediately perceive that 78.221 is not as great as 78.33, so the dollar remains below support in a downtrend. Unless it closes above 78.33, nothing changes in the outlook.

STOCKS today gave mixed messages, some indices up & some down. Confused markets don't usually rise. The Dow rose 3.32 to 9,509.28, while the S&P500 fell 0.56 to 1,025.57. Something new did pop up here: the Dow In Gold Future Dollars (DiG$) went to a new high for this lackluster rally, G$208.61 (10.091 oz). Because stocks have only very slowly and with great difficulty gained on gold future, I don't take that as a sign of anything more than the DiG$ nearing a peak in its rally. I don't expect it to better $215.00 (10.401 oz).

Speaking of confused markets, the GOLD Future PRICE today fell US$10.90 to close at US$942.30 on Comex, while silver future price rose 3.1 cents to a Comex close at 14.195. Now y'all understand why I hedged my comments Friday. The Gold Future price needed to follow up with a higher close today, but fell instead. Isn't that weak? Not really, because it didn't fall out of the triangle it has been trading in. I'm tempted to say (with Ned Schmidt) that gold Future Price is in the hands of traders, who are taking it back and forth to scalp small scalps. However, the technical pattern doesn't lie. Gold future price continues to trade within that triangle; falling out of the triangle would have spoken of terrible things, but Gold Future Price has not fallen out of it. And even-sided triangles can break out up or down. Like a spring, the gold price is coiling for a break out. It's a bull market, so it will most likely break out to the Upside.

The SILVER Future PRICE rose today, refusing to confirm gold's Future Price drop. Since silver Future price is the more volatile metal and the smaller market, that might be a bullish sign. Downside silver might fall to 13.60 without falling out of its upward channel. On the upside, silver future price needs to climb above 14.25, then challenge 15.00 again.

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's Future Price primary trend is up, targeting at least $3,130.00; Silver's Future Price primary is up targeting 16:1 gold and silver future Price ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold future Price; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down of future asspects.

If Readers like my posts about gold and silver future and want my reports daily then please subscribe to my post by this you will get all my post at your mail box.