Well, so much for our high hopes for gold and silver today.
Silver has now reacted sharply down from the $37.80 level twice, setting up a range trade between $36.80-90 and $37.80. If silver is able to remain in this range for awhile, the consolidation will provide a decent base for the coming move towards $40, and possibly beyond.
Gold appears to be in a range trade from approximately $1411-$1430. A sideways consolidation just under all-time nominal highs is extremely bullish for the long term prospects for gold. The numerous geopolitical events in MENA, the Japan situation, and the US fiscal debt crisis will continue to provide strong support under the gold market, and will induce strong buying should price break out of this trading range to the downside.
