Monday, February 27, 2012

London Raids Fail, Gold & Silver Back Above $1775 and $35.50

Live 24 hours gold chart [Kitco Inc.]During the US overnight hours, gold and silver entered the LBMA session above critical support at $1775 and $35.50.  Not surprisingly, both metals were raided on the open of the LBMA: gold was raided $12 to $1763, and silver 0.50 to $35.00. 
Rather than continue their sell-offs in the US session however, both metals have rebounded sharply, and have retraced the entire overnight losses on the LBMA session.  Silver has just vaulted back above $35.50, and gold to nearly $1780.

Live 24 hours silver chart [ Kitco Inc. ]

Live New York Silver Chart [ Kitco Inc. ]

As we have recently mentioned, once silver takes out $36 convincingly, there is simply not much resistance between $36 and $40- things could get interesting quickly in silver should $36 be taken out to the upside this week.

And gold:

Live 24 hours gold chart [Kitco Inc.]

Live New York Gold Chart [Kitco Inc.]

Gold's reversal appears particularly strong this morning, and indicates that gold is preparing to mount an attack on the $1800 level, likely this week.  Look for the cartel to bring out all their guns to the fight at $1800, for if this level is breached, gold will quickly run back to the all-time nominal highs from last August of $1915.