Tuesday, April 19, 2011

Gold to Pass $1500 Today?

Gold and silver both worked higher overnight- both of metals are absolutely refusing to stay down.
Gold sold off about $10 down to $1488, but has since recovered almost all of its losses, and is now right back up against yesterday's all time high placed just south of $1500.  Most analysts are expecting $1500 to serve as resistance for a good while, just as the $1000 level capped gold for 3-4 attempts.

We're going to go out on a limb here however and make a call that gold will shoot through $1500 either today or tomorrow. This would be unusual technical action, but these are unusual times, and we have a feeling gold is going to surprise to the upside. If we are right, and gold surprises by immediately taking out $1500 convincingly, look for both gold and silver to gap up as numerous buys will be triggered, and shorts placed near $1500 will have to be covered immediately.  This would take silver to the $45 level in a heartbeat.
If we're wrong and gold does take a while to work past $1500 we'll have nothing to be concerned about, as this is normal technical action, even in a raging bull market.  We're just gonna go with our gut on this one though.