Gold and silver have continued their week long rally this morning, as silver consolidates above $29.50 trading as high as $29.66, and gold consolidates above $1640, trading as high as $1645.
On purely technical levels, both gold and silver have now decidedly broken out of their multi-month consolidation ranges.
Silver needs to clear $30.50-$31 to break out of its 15 month wedge formation and really be off to the races.
Caution is warranted for the rest of the day however, as the Fed minutes will be released at 2pm EST.
As Eric Sprott informed our readers back in June, the silver cartel’s new MO is to raid the metals upon any FOMC speech or release. What we see today is precicely what was occurring back on Feb 29th, as silver had clearly broken out at $37.50 early in the morning, and was then absolutely smashed following Bernanke’s Congressional testimony.
Be prepared to STACK THE SMACK on any cartel MO raid this afternoon.
Gold is consolidating above $1640:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
I feel like they’re pumping it and they’ll dump it when bernanke says that the fed will intervene when the conditions get worse
The buying this week has had a more organic character than the pump-and-set-up-for-dump type action we often see. Just my $0.02.
great point silver teen. I was looking for it to go back into the channel at 28.75-29.10 on good volume; however, the volume has been less than I had hoped. I think this thing needs to break about 32.50 mark on solid volume (and be confirmed) for us to be out of the woods. But the volume would back your theory, as would the timing of these moves (NY open).
Let’s see what happens.
This rise over the last few days has been great, but come 2pm….WATCH OUT!!!!
@ 2pm Eastern and 8am Hawaiian, I will be here watching this show.
PM equities are showing modest pressure this morning, but surprisingly, one would normally expect much more selling in advance of a coming cartel raid (the cartel frequently uses equities to telegraph near-term actions). However, as I said yesterday, when the short-term bull run levels off, that’s when the cartel likes to attack, and that’s what we’ve got going on right now. So, that part of the historical patterns fit, and the attack-on-FMOC/Bernank releases/speaking days has a perfect set-up. Putting all this together, it suggests that we will see an attack but it will not have much staying power and the metals will resume their upward climb at the end of the week. My Sunday forecast for $30.08 silver’s weekly close just might have a chance of nailing it. We’ll see. Heck, who knows? Maybe the minutes will have a more bullish tone for PMs and the sector will rise rather than get hit. Given what is going on in the US bond market and the forced wind-down of Operation Twist, the Fed appears to have no choice but to conduct unsterilized Treasury issuance purchases. Once the world figures out that fact, the PM sector is going to take off to the upside.
Watching all of this unfold over the last many months has been a surreal live movie that has been both very sad and disheartening with some exhilarating and invigorating moments of hope that We The People will win at this game that we are involved in that has been controlled by the TPTB until they can no longer control the game and it turns against them and rewards the enduring.
This is surprising, it is holding up so far. I notice a heavy buyer now and then that reverses the little downward tugs..
On the 1 minute chart, at 11:05 AM you can see one of his moves plainly. (Netdania)
Things are looking up, for now.
edit: WHOA! Look at that purchase at 2:00 PM on the nose, over 1200 contracts. Took it up 15 cents in one move.
Now, long tails everywhere, the battle is on.
Hi all. I finally registered today at the Docs. Been lurking here since early July. I have to say that it has been very rewarding reading the Doc’s posts, and all of the members commentaries. I have learned a great deal from all of you and wish to say thanks.
I feel very fortunate. It was back in mid June when I was talking to a drunk guy in a bar who kept saying over and over to buy silver, it’s gonna blow soon. He seemed a little kooky to me at the time, but the stuff he was saying actually quite logical, if not a bit incoherent. It was enough though to get me to google the whole silver thing, leading me here and other places. I spent hours and hours learning the fundamentals, and worked up the courage to plunk down a large (to me) chunk of fiat for phyzz in early July. I think my drunk bar buddy did me a huge favor! Even if it doesn’t blow soon!
This has certainly been an interesting day in silver. Almost as good as watching American football.
Glad to be part of an informed group,
KS
Instead of smackdown we get a nice little surge in PM prices. Bill Murphy must be loving this. Nothing like being right.
$30+ and hovering between 30.19 and 30.40. Will we see a takedown tomorrow?