Aren't the markets funny?
Seriously, wasn't it just 27 hours ago that the Chicom rate hike was supposed to rally the dollar and depress PM prices? Didn't a brainless computer dump some Feb11 gold at $1373 or so just last evening?
Here we are, one day later, and the USDX is smashing down through support and the metals are rallying. As I type, Feb11 gold is 1391 and March11 silver is 29.50. Wow! What a difference a day makes!
Take a look at this chart of the USDX:
Last week, you'll recall that both metals ran into some price-capping resistance courtesy of Blythe and her monkeys. Expect the same this week, too, even with the holidays and the big east coast blizzard. Gold would need to move through 1393 and silver needs to best 29.60 before we can start getting excited. You can rightly assume that, as we approach those levels overnight or tomorrow morning, the EE will be waiting with all the fresh paper metal worthless fiat can buy.
The key will be what happens next. Will we paint another FUBM and blow right on through? Maybe, we'll see. But whether we blow through tonight, tomorrow or Wednesday doesn't really matter. As we discussed last evening, recent timing would suggest that the start of the next major UP leg in both metals is imminent, no later than next week. Blythe can lie, cheat, cajole and steal to her heart's content but the BoS is determined to break her and her position is untenable. She will lose.
Finally, Eric King posted a blurb on Richard Russell's gold opinion tonight. You'll enjoy it. Turd out.