Monday, April 2, 2012

Gold, Silver Morning Update: Silver Explodes Through $33

Live 24 hours gold chart [Kitco Inc.]Gold and silver have exploded higher in early COMEX trading this morning, with silver leading the way.  Silver shot through resistance at $32.60 and has blasted nearly a dollar higher on the day to $33.19. 
Really not much to say about this rally as it is classic action post options expiry.  Time and again the cartel suppresses, caps, and raids silver (and gold) into options expiry, then allows the metals to run throughout the next week or two. 
Also helping out this morning's rally is the first trading day for Q2, meaning we are likely seeing big inflows from hedge funds who had taken profits last week prior to the close of Q1. 

Silver is likely to see resistance in the $33.30-$33.50 range today, and should it clear that, more significant resistance in the $34.50-$35 zone. 

Live 24 hours silver chart [ Kitco Inc. ]

Gold has also broken higher, adding nearly $20 from $1665 to $1683.  Look for gold to attempt to regain the $1700 level this week, a level that has seen gold consistently capped below over the past 2-3 weeks.  At some point the bullion banks will have to retreat to higher ground, and set up camp again in the $1750-$1800 zone.  

The $1800 level is the point of no return for the bullion banks, as should gold take out $1800 again to the upside, new all-time nominal highs are locked in.  Look for this to happen later in the month should the Fed hint at QE3 at their April FOMC meeting, as is expected by PIMCO's Bill Gross.

Live 24 hours gold chart [Kitco Inc.]