Silver is down nearly 1% in early Monday Globex/ Asian market trading, erasing all of Friday afternoon's gains in the access market. Silver had climbed 30 cents from $33.70 to $34 after Friday's COMEX close in the access market session, but abruptly gave up all of those gains in early trading tonight, currently down 1% to $33.60.
As mentioned this afternoon, the $34-$35 level is critical resistance for silver, as a move through $35 is likely to set up a rapid run to $40. If the bullion banks can hold the line at $34, look for silver to work back towards $32, and fill the gap on the charts created last Wednesday on the FOMC announcement that took silver from $32 to $33. $32 should prove strong support, as this is also the bottom for silver's 30% correction in May.
Gold is also erasing its access-market gains made Friday, down a more modest $5 or .3% to $1733. Gold also may attempt to test and fill its gap from Wednesday's FOMC announcement near $1675- $1710 before resuming an attack on $1800. Gold has made a significant move of over $200 from the low $1500's to mid $1700's over the past few weeks, and is due for a modest pull-back.