JPM resumed its bang the open policy this morning, knocking silver down about .50. Silver is acting remarkably strong here, refusing to stay below $37 during yesterday's margin hike induced sell-off, and re-approaching the $38 level this morning! Think back to the first rate hike last fall- silver dropped like a rock, plunging from over $31 to the mid $27 range, and did not recover the $31 level for some time. The tricks just aren't working like they used to- merely allowing JPM/HSBS (not a typo) a few hours to regroup. For those who haven't seen it, Trader Dan has an excellent piece out on yesterday's bullion bank action here.
The dollar is again testing the 76 level this morning, but has yet to penetrate it. We will be watching this level, as 76 was previously a strong support level, which has now turned into resistance after the dollar has convincingly broken below it. For the dollar to generate any sort of significant bounce at all, it probably needs to take out 76 on this attempt. If not, we will quickly be testing the all- time lows. That will see silver at $40 and gold at $1500.
