Not buying gold yet

The gold price jumped up yesterday, closing at USD 1,574.50

Franklin Sanders wrote this:

   The Gold Price Rose $38.30 Can it Climb Above $1,580 Tomorrow to Confirm Reversal?

   The GOLD PRICE rose 38.30 (up 2.5%) to end at $1,574.50. It left behind a double bottom on Wednesday at $1,527.7 and worked its way up to $1,550. In Europe it danced just under $1,550, then at 8:00 a.m. jumped to $1,557, traded sideways, then gapped up at $1,557 levitated, gapped again ($1,563-$1,566) and shot for $1,580. Closed near the top of the range.

   Folks, metals are strong as a garlic milkshake. To preserve that spike bottom for posterity, gold needs to climb above $1,580 tomorrow and confirm its intent. Milestones of success after that are $1,600, then $1,630. The GOLD PRICE must overcome these quickly, and that I expect to see.

I won't buy the ZKB Gold ETF (SWX:ZGLD) yet today and wait to see how it closes today.

Sanders also wrote:

   Better swap GOLD for SILVER now. Ratio may have topped yesterday. Confirming a reversal in gold and silver, premiums on physical silver and gold are rising rapidly, and that will hurt our realized ratio in a swap. If you plan to swap gold for silver, you'd better do it quickly.

Is gold turning around?

The gold price fell through the bottom line of the channel I have drawn and it will be interesting to see where it goes from here. I shall wait for today's close and then evaluate whether or not to buy.

Yesterday, Franklin Sanders wrote:

     The GOLD PRICE made a low at $1,527.70, practically on my target. Silver posted its low at 2676 c, not far off 2615c support.

     Both the silver and gold are coasting along on their bottom Bollinger Bands, something that hasn't happened since fall 2008. Implication? Silver and gold are monstrously oversold, and will shortly come roaring back with a rally, even if only a temporary one.

     End of this decline ought to come within a week at most, but that euro crisis hangs over everything, scaring everyone to death, much like the 2008 panic in the US.

Gold still moving sideways

I am looking a the channel again I charted a few days ago. The price briefly broke out above the channel but immediately fell back into it again.

Looking at gold

Looking at a three-month chart of the gold price in USD per troy ounce I see a down channel formation and am waiting to see which way it breaks out.