Lots of freaked out traders overnight as nearly everything was sold off on fears of a meltdown in Ireland. I guess we now know why the Fed front-loaded so much POMO for next week. OK, great. Now for some perspective.
Can we all agree that the Greek "crisis" peaked on May 6 when "students" were storming the Greek Parliament and the "market" experienced its first flash crash? If so, chew on this for a moment...gold closed that day at $1201.90 and, one short week later, traded as high as 1248. Silver closed May 6 at 17.58. And no POMO back then, either. Well, at least not obvious, above-board POMO, that is.
My point is that this, too, shall pass. Overnight the Dec10 gold again tested support around 1380 and, again, it held. As of 9:20 EST its rebounded all the way to 1392.50. Silver did the same as it bounced right off of 26.50 once again and has a last of 27.18. As we go along today, all of the overnight fireworks will be nothing but a distant memory provided the Dec10 closes above 1372 and the Dec10 silver closes above 25.90 (recent lows). With $6-8B in POMO hitting the PDs later this morning, I would be absolutely stunned if we happened to fall below those levels. With a little POMO love, we may even put in a "upside reversal day". An upside reversal day would occur if we can close today above yesterday's high of 1417. It would take a lot of work but it's worth pulling for if only because of the damage it would do to the weekend plans of Blythe and her minions.
Lastly, ignore the doomsayers and top-callers. CNBS will be wall-to-wall with those douchebags all day. They'll never mention that events in Europe only increase the need for global QE, which will further serve to devalue all fiat money, which will certainly drive the PMs to new highs soon. Oh, and be sure to check Harvey Organ from last night. Nothing in Europe changes that impending delivery crisis on the silver Comex, either. Buy. Buy all dips.