We have stated repeatedly for the past few weeks that when silver takes out $42 convincingly, it should run almost immediately to the mid $40's, and from there remount its attack on $50.
The cartel can read a chart as well as we can, so expect a FIERCE battle throughout the rest of the day as they attempt to pull out all the stops to prevent a WEEKLY CLOSE above $42.
Gold is just a beast today. Gold cleared $1850 without even breathing, running all the way up to nearly $1880 during London LBMA trading prior to the COMEX open, a new all-time nominal high.
The Doc is beginning to think gold wants to break $1900 today, and will run straight to $2,000 next week before we see a decent correction. If $1900 is not met today, look for gold to sail past it during the Sunday night Asian session....barring a 2nd CME margin hike within the week.
Hugo Chavez recalling his 210 tones of gold held by the bullion banks has absolutely lit a dynamite fuse under this market...as if gold needed any further assistance. Throw in the ongoing panic in Europe...and you truly have the perfect storm for gold right now. Gold is now entering BACKWARDATION, joining its sister silver...indicating EXTREME TIGHTNESS OF PHYSICAL SUPPLY!
|MARKET IS OPEN |
(Will close in 8 hrs. 4 mins.)