Gold and silver launched vertically on Thursday’s COMEX open, as Europe’s bitcoin hysteria in the wake of the Cypriot wealth tax appears to have finally spread to the only true safe haven currencies, gold and silver.
Silver sliced through $29 and jumped nearly to $29.50 immediately, while gold jumped to nearly $1620.
After continual capping throughout the overnight Asian and London sessions, silver exploded to the upside once resistance at $29 was taken out:
Similarly, gold made a 2-step vertical move to the upside after $1610 was breached:
With the FOMC behind us and the strength of this morning’s move to the upside in both metals, it is becoming more likely that significant long term bottoms have been placed in both gold and silver. Jim Sinclair recently stated that gold will never be seen under $1600 again, and we believe the same is highly likely for $20 handle silver.
The window appears to be closing on the excellent buying opportunity gold and silver have offered over the past 6 months.