First, a re-print from yesterday that I think needs to be kept in mind:
"So, what can we expect next. Since we did traded through but did not closeabove 28.24, I'd expect a bit of short-term consolidation between the high of today and, maybe 27.80 on the downside. The consolidation will probably last into and through tomorrow. It doesn't necessarily have to; it may just keep on rolling. However, since we couldn't close above 28.24, a "breather" is likely before the test of the old highs.
But, don't worry. That test of 29.40 is coming. It is, most definitely, coming later this week. Just like the $26B in POMO that is most definitely coming later this week. And, yes, the two are related."
OK. Today has brought this exact type of action. After nearly reaching 29 overnight, the EE a little dollar bounce has caused silver to trade back to a low of 28.02. It is currently back to 28.31. Don't be surprised if it takes another stab at 28 later this morning.
But, please, don't get freaked out by this. Failure to close above 28.24 yesterday virtually assured this kind of choppy action today. It is of zero long-term consequence. Nothing else is down. Crude is up $1.50 and the grains are cooking, too. Silver will rebound soon.
In gold, same deal. Failure to close above 1385 yesterday meant that today would be rangebound between 1398 and, maybe, 1381 on the downside (the lows of yesterday). The low, so far, is 1383 and the last is 1387 so nothing significant has yet taken place.
Relax and enjoy the day. $9B in POMO starts about now so I'd expect us to trend higher the rest of the morning though there is a chance that one more downward stab may materialize. 1381 and 27.80 should hold, however.
Lastly, have you seen my wheat?!? Rollin, daddy. Up about 40 cents on the day. Its going to be a long, dry, cold winter out here in God's country. Not good for the winter wheat crop.
More later. TF
1:35 EST update: Blythe desperately tried to drive gold back under 1385 before the Comex close. A pathetic, criminal attempt to paint the tape with a 2nd straight close under that important number. The good news is that she failed and gold closed in NY at about 1389 or so. I'll add a chart in a while that shows her devious acts.