Gold and Silver Update

Not much needs to be repeated this morning, but we thought an update was due as gold has placed a new all-time nominal high at $1585.
As we stated yesterday, if gold can maintain its gains and hold above $1577, a new up-leg will have been confirmed, targeting $1600 as the next major resistance level. 
Personally, we now are anticipating a retest of $1577, which will likely now turn into support, followed by a move to $1600.
Following $1600, next up is Jim Sinclair's $1650.  For as much crap as Sinclair has taken over gold not reaching his target of $1650 by Jan 14th, 2011, one must remember that this call was made nearly a decade ago, and it appears he will have been off by less than 7 months. Simply amazing. Quit acting like you understand gold better than Sinclair, and give credit where credit is due.  The accuracy of this call nearly a decade ago makes Sinclair's latest gold prediction of $12,500 even more astounding. $1650 will likely present a vicious battle, as the $2,000 round number will begin to pull gold upward like a magnet once the metal clears $1650.

MARKET IS OPEN (Will close in 6 hrs. 57 mins.)
		Metals	Date				Change		Low	High
		GOLD	07/13/2011				+14.10	+0.90%	1571.60	1585.60
		SILVER	07/13/2011				+1.49	+4.12%	36.67	38.07

Silver has had an even more explosive move today, gaining 5% (nearly $2) already.
Clearly, gold breaking out to new highs is pulling silver higher, as we anticipated.
Silver is now trading at the very top of its consolidation zone that has held is since early May.
If silver can clear $38-$38.50 expect to see low-mid $40's silver in under a week, particularly if gold continues to break out.
We have said for some time that the next time silver passes $40, you are likely to never see $30 silver again in your lifetime. 
The massive rallies in the past 2 days in both gold and silver are a result of the FOMC minutes even hinting at the possibility of additional QE.  Can you imagine what gold and silver will do when QE3 is officially announced?

Perhaps, like Sinclair, the call will end up being a few months early, but The Doc still stands by his call for $70 silver before the end of 2011.