Gold and Silver Morning Update

Surprise, surprise. With the holiday weekend now over, gold and silver have both ramped this morning. (We don't think that The Bernank currently has a mic in front of his beard, but you sure couldn't tell by gold and silver's price action!)
Thankfully The Doc followed his own advice Friday and bought into the dip over the weekend, as silver has jumped from the low $33's to over $35 now.
Gold and silver were taken down all last week with July first notice beginning on Thursday, then the cartel gave the grand finale on Friday with the huge take-down in the low volume pre-holiday session.
Nothing like a low volume session at the end of a week long sell-off to make Blythe drool.


This is why you must RESPOND to sell-offs in silver and continue to accumulate the physical metal.
For now, silver has held above $33, and has yet to retest the lows near $32.  Silver has regained the $35 level this morning, and is once again squarely in the middle of the broad range trade of $32-$38 that has held the metal since mid May.
Continue to accumulate physical silver towards the lower end of this trading range, as we have stated before, in 12-24 months from now readers would give anything for the opportunity to purchase silver in the low-mid $30's.
Silver's current broad range trade is building a strong base for the next major upleg in silver that will likely begin late this summer.  Seasonal bullish factors will soon be pulling both gold and silver up from their consolidation zones, and we will likely not see low $30 silver again.



Gold has also convincingly retaken the $1500 level this morning.  If gold can close back above $1500 for 2 consecutive sessions, it looks like the correction back to support near $1400 that looked possible last week won't happen.  With the Euro debt crisis continuing like an unending soap opera, as well as US federal and state debt issues coming to a head, its easy to see why any correction in the yellow metal is modest and short lived. Major buying has been seen on both dips below $1500.  The psychological number will quickly turn into major support, much the way the $1,000 level became major support.