After being capped in a tight range at $35.60 throughout the London session- a level at which the cartel has capped silver since last Friday, silver went vertical just prior to the COMEX open. Silver shot as high as $36.35 before Blythe and friends went into damage mode and attempted to stuff the metal back under $36. $36 has held as support thus far, as the previous resistance level has turned into support. Should silver be able to hold its gains through today's close, the stage would be set for a re-challenge of $40. Bernanke is scheduled to speak tomorrow (Wednesday) however, so this will likely play a crucial role in the short term direction of both gold and silver.With oil, gold, and silver all rocketing over the past few weeks, we would not be surprised at all should Bernanke attempt to limit the dovish MOPE in this month's statement. If The Bernank gives the same verbal easing and attempts to goose the market with more rhetoric tomorrow as has been done with the past 3-4 months' FOMC statements, look for silver to make a run at $37.50 and gold at $1825 tomorrow.
Gold also placed a strong rally during today's London session, placing more methodical gains to $1783 before the COMEX opened and the selling began. Gold has now rallied nearly $300 from its recent lows, and it doesn't really even feel like its made a major move yet. Gold is now a mere $150 from the all-time nominal highs placed last August near $1915, and appears ready to challenge those levels and likely take them out to the upside in March.