Friday, March 30, 2012

Morning Update: Gold & Silver Open Strong

Live 24 hours silver chart [ Kitco Inc. ]Thursday afternoon's strong performance by silver (which rallied throughout the afternoon during a public appearance by Bernanke for a change) has continued Friday morning, with silver up over .50 to $32.74.  Look for silver to continue to run up to the $33 level throughout today's trading, where it should experience some resistance.  We could see a decent move in this afternoon's Globex session if today's COT report is as bullish as I anticipate.

Live 24 hours silver chart [ Kitco Inc. ]

Gold is also working higher this morning, after an even more impressive performance Thursday afternoon. After seeing a $20 sell-off beginning around 11am EST on Thursday, gold made a strong reversal to the upside, and gained back all its losses and then some, closing the globex above the price it was trading at prior to the am raid.  This is unusual, and likely could be a sign that the cartel has decided they have induced as many new speculative short positions as they can, and they are now ready to let price run higher, and fleece the new longs.  If that's the case, we'll know for sure by Tuesday, as gold should be trading back above $1700 again soon if that is what occurred. 

Live 24 hours gold chart [Kitco Inc.]

With PIMCO's Bill Gross yesterday calling for at least a strong hint of QE at the April FOMC meeting, look for further hints by Fed governors over the next 2 weeks for confirmation.  Should the Fed even hint at QE3 focused on MBS, gold and silver will respond strongly to the upside.