A Very Encouraging Day

Wow! The Turd is excited. Today was a very encouraging, positive day in gold. CNBS and other media will report that gold closed slightly higher but you, dear reader, should know otherwise.

In the face of a significant physical supply squeeze, the Evil Empire has tried on three occasions since last Friday to raid the gold and silver markets in an attempt to scare off weak-handed longs. To Blythe's considerable chagrin, it hasn't worked! Even in the face of a 1.30 rally in the USDX, it hasn't worked!
HAHAHAHAHAHAHA! Eat it, Blythe! Take a look at this 30-minute chart:

Note that our buyer(s) of size show up, as if on cue, to stop the declines at subsequently higher levels. The speed of the rebound shows the size of the orders which caused it. The BoS are determined to use any and all dips to add to positions.

As I type, Dec10 gold is at 1369 and Dec10 silver is at 27.20. Both are butting up against EE-constructed resistance at those levels. I fully expect the resistance to give way either later today or overnight as the PMs continue to trade on the Globex. By tomorrow at this time, gold should have approached the critical 1375-85 level and silver 28-28.20. If not tomorrow, certainly Wednesday. Too much POMO to hold it back and the USDX rally/dead cat bounce looks to have run its course at 81.50.

Lastly, Jim Sinclair likes to link to a blog by a guy named Eric De Groot. I've done the same below as Eric provides charts of gold priced in every single, major fiat currency. You can plainly see that the desire to own gold is a global phenomenon. The fallacy of chart-reading topcallers like Prechter lies in their reliance upon the charts of gold priced only in dollars. The fact that Prechter ignores these other currency charts in his "analysis" exposes him as either a clueless dope or a charlatan. I'll let you, my dear reader, pick which option suits him best.

http://edegrootinsights.blogspot.com/2010/11/gold-is-worlds-premier-currency_27.html

I'll try to check in again later this evening. Until then, I've developed a habit of adding extra thoughts in the "comments" section of my posts. Be sure to always check there if you're looking for updated opinion.

Oh...and one more thing. I've reluctantly added a couple of Google ads to the site in a blatant attempt to compensate myself for the time I'm spending keeping things current. If you appreciate the quality of what I'm trying to do here, please remember to click through to one of the "advertisers" when you leave the site. Thanks! Turd.