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.
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.
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.