Monday, July 25, 2011

Cartel Smashes Silver on COMEX Open

Live New York Silver Chart [ Kitco Inc. ]Silver received the usual treatment on the COMEX open this morning. A surge on the COMEX open challenging the $41 level induced quick action by the cartel, knocking silver from $40.96 to $40.26.
It appears that the t1/2 of the latest silver smash is roughly 90 minutes, as silver has already retraced almost all of its losses in the smash, with a last quote of $40.83!
As we have said repeatedly, if silver can take out $41 convincingly, silver should challenge $42-$43 in a flash, as momentum traders pile back in to the shiny gray metal.

Live New York Silver Chart [ Kitco Inc. ]

Live 24 hours silver chart [ Kitco Inc. ]

Gold received the same treatment, with the cartel lopping $5 off gold on the open, but gold took about 5 minutes to recapture its losses and set new COMEX highs near $1621.
With gold setting a new all-time nominal high of $1623 overnight in Asian trading, the next leg up to challenge $1650 seems to have commenced.  The cartel will now have trouble stuffing gold back below $1600, which should now turn into support.

Live New York Gold Chart [Kitco Inc.]