$1600 Gold By June 10, 2011 - Revised

On Friday, January 21, I issued the above proclamation. So confident was I that the correction we were enduring would soon end, I felt the time had come for me to "stick my neck out". Here's a link to the original: http://tfmetalsreport.blogspot.com/2011/01/1600-gold-by-june-10-2011.html

My promise to you then was that if gold didn't make it and I was proven wrong, I would shut this blog down and slink back into the sewer where turds belong. Tonight I am notifying you that I am officially reneging on this pledge. Not that I'm concerned about the price target...I'm more confident than ever that gold will get there in time. Heck, gold has already risen from the 1344 level that it closed at that Friday evening to a last tonight of 1477. We're more than halfway there and we still have about two months to go! No, this isn't about that.

Over the past three months, I've come to realize that this blog is needed. Its necessary. Not for my input, you can do just fine without me. This blog is vital for the information contained herein. There is no other site currently available that can provide honest, helpful and unbiased information to anyone desperately searching for a way to protect themselves and their families from the pending Keynesian collapse. To that end, today I formally began the process of building us our new site. The contractor and his team start work tomorrow. The target date for the unveiling is late May/early June. I'll be able to share some details with you along the way but, as I said earlier this week, I'm seeing it as a sort of "Angie's List" for all things precious metal. One big difference, there will be no membership fee or subscription cost.
http://www.angieslist.com/
We will all share our expertise and experience and we will all collectively benefit.

So, I'm sorry but I must break my pledge. Gold will still trade to $1600 by 6/10/11, of that you can be certain. However, if unforeseen circumstances postpone the advance or if we end up just a few dollars short, I'm not going away. This project is too important.

Onto the overnight charts...All you really have to watch is the POSX. Silver has had a great, 24-hour run and gold used up a lot of dry powder trying to reach 1478+ and, hopefully, trigger a bunch of buy stops. When that didn't materialize, the rally stabilized and we are now hovering between 1476 and 1478. I'd expect this to continue, maybe even drift a little lower...unless...the POSX breaks down. Take a look at this chart of the June:

For whatever reason, I can count 4 hourly lows at exactly 74.84. Very strange. IF that level gives way overnight, expect a sharp drop down toward the 74.25 area tomorrow. Clearly, this type of action will also provide impetus for an extension of today's PM gains. Silver would head toward $43 and gold would shoot to 1490-95. So, watch the June POSX very closely. If you're following the Kitco chart on this page, June 74.84 corresponds to about 74.65.

Here's an hourly gold chart, too, showing the action around 1478.

Lastly, the CME raised margins on crude late this afternoon. As you can see, nobody cared:

Simply put, there is just so much frickin money sloshing around the global financial system that puny, little margin hikes simply have no impact. Now, maybe, if they increased margins to 150% or so the criminals might get the desired effect. Oops...I probably shouldn't give them any ideas.
At any rate, IF they raise silver margins again or IF Tungstenman puts out a negative report on the PMs, get ready to aggressively buy any dip that ensues. Their desperation is palpable.

Have a great overnight. Can't wait for tomorrow!! TF