 |
| Silver has held the critical $40 level |
 |
| Look for resistance near $1465 |
Absolutely stunning action in gold and silver this morning! The cartel threw everything they had at silver on Monday and Tuesday, but have not been successful in keeping it below the critical $40 level. Silver clawed slightly back above $40 by yesterday's close. This morning silver is again strongly in positive territory, taking back the $40.50 level. As we have noted several times previously, from a technical standpoint silver could have been expected to retest its last resistance level near $37.80-$38 after breaking out to $42. The fact that it appears the correction ended nearly $2 ABOVE this point around $39.80 is a tremendously bullish sign for this market. Blythe cannot even coerce silver into a normal, technical correction!
Gold is also strong this morning, holding the $1456 level several times overnight, before working higher into the $1460's during early COMEX trading. $1465 seems to be the new resistance area that has developed in gold. A strong move through $1465 sets up a target of $1480-$1490 before the final assault on $1500.
We believe gold may just defy predictions and shoot right through $1500, much the way silver sliced past $40 just a few days ago. Once again, we hope you followed our advice and bought the dip yesterday, because the discount sale appears to have ended early.
