Gold and silver popped higher around 6am EST this morning as the ECB’s Mario Draghi stated that he was prepared to do ‘whatever is needed to save the Euro‘ and that the ‘Euro is irreversible‘.
While Draghi didn’t state anything he hasn’t said previously, the market has interpreted the remarks as an indication of massive new easing by the ECB, and gold and silver (along with the European markets) exploded higher.
Silver gained nearly a dollar to $27.86, and gold vaulted nearly $20 to $1621.
Unsurprisingly, both metals have corrected somewhat as the NY market opened.
Remember that today is options expiration in gold– one of the cartel’s favorite opportunities to raid the metals.
Thankfully, any such raid today will now have to begin from substantially higher levels thanks to Draghi’s MOPE.
Again, we would like to see 2 consecutive closes above $1600 (and a weekly close for confirmation) and then gold should be pulled to $1650.