Well, isn't this interesting?
First of all, sorry for the delay in checking in this morning. The youngest turd is under the weather so I've been a little distracted.
I must say that I am more than a little intrigued by today's action. We got the Chicom rate hike announcement which, predictably, sent the PMs reeling. Then, right around 8:30 and just when one would expect Blythe to put the hammer down, the PMs reversed and shot higher! It smells of manipulation...in this case to the UP side. And with today being Feb 8 and all the hubbub from the mysterious Benton, well, like I said, isn't this interesting?
Here is a 3-minute gold chart showing today's volatility:
One, look how 1350 even served to contain the early am selloff today. This is a very positive development and the more times it holds, the more sturdy the support becomes there as buyers, recognizing the support, begin to place orders right at that level. A virtuous cycle, if you will.
Two, gold has now moved into the "congestion zone" of 1360-80 that we mentioned last week. Expect some tough sledding through here as a move through 1380 is going to generate a lot of excitement from buyers and, well, from Blythe's perspective, we can't have that.
Now look at silver. Again, the lines on this chart are mainly for perspective. As in gold, only a move back down through today's earlier lows would give me pause. IF this rally continues, however, and IF we can move UP and through $30, its "katie bar the door".
Keep your fingers crossed and keep checking in. TF