Gold and silver have gone vertical once again on today’s COMEX open, with gold jumping $12 just shy of $1740, and silver up .50 to $33.95.
Look for the metals to continue their rally ahead of today’s COT cutoff as the cartel likely attempts to hide the true extent of their net shorts from scrutiny in the COT report, as well as free up fresh shorts with which to potentially attempt to smash the metals Wednesday or Thursday after the German Constitutional Court and the FOMC make their respective announcements.
Gold looks set to challenge $1760, and silver looks ready to test $34.50-$35 ahead of the big action later in the week. Expect MAJOR volatility in the metals come Wednesday and Thursday. We recommend any traders either have very tight stops, or else sit this one out entirely as NO ONE knows what the German Constitutional Court will rule on Wednesday regarding Germany’s bailing out the Euro-zone, and even The Bernank himself may not know right now whether the Fed will implement QE3 Thursday until after the German Court makes it’s ruling.
Stackers should have some dry powder ready and waiting, and STACK THE SMACK if a cartel raid materializes.
Silver popping to within a nickel of $34:
Gold closing in on $1740, where the cartel has repeatedly dropped the hammer on the metal: