Wednesday, October 26, 2011

Morning Gold & Silver Update: Silver Touches $34 Before Cartel Raid

Live 24 hours silver chart [ Kitco Inc. ]*Update: Silver making another run at $34, and gold has run back up to $1720, where it was again capped by the cartel.
With silver and gold both threatening to completely break out of their consolidations overnight, Blythe snapped out of it and went back to work.
Silver was bid up to $34 on the Asian market, prior to an LBMA smash back to $33.30.   Now that silver has set a new high since the $26 panic low, we'll watch to see how much of these gains it can hold into today's close.  Technically silver has broken out of its range-trade consolidation, before being stuffed back into the range zone.
A close back above $33.60-$33.75 should set silver up ultimately for a run back to its pre-smash levels of $39-$40- as there is simply no resistance from the gap down that occurred in September. 

The cartel understands this as well as we do, hence the elevator-drop smash in the early morning hours as silver prepared to clear $34 and be off to the races.

Live 24 hours silver chart [ Kitco Inc. ]

Gold was also given the usual treatment- however unlike silver which was rudely shoved off a cliff, gold was capped overnight repeatedly near $1720.
Perhaps more astonishing is the fact that gold was allowed to run more than 2% higher yesterday-only the 2nd or 3rd time in the history of the bull market that the cartel has allowed gold more than 2% higher during a single session.
Sudden expectations of QE3 appear to have overrun even the big boys!

Live 24 hours gold chart [Kitco Inc.]