Gold and silver are spiking on Thursday’s COMEX open, with silver finally taking out the cartel cap at $35, spiking through the level to $35.20.
Gold cleared the $1780 cartel cap early in Thursday’s Asian session, and consolidated between $1785 and $1790 throughout the duration of the Asian and London sessions, prior to spiking towards $1800 on the COMEX open and setting a new 2012 high of $1796.
We have repeatedly discussed the importance of silver closing above $35 on consecutive sessions, and gold above $1800, and the fact that the cartel has been capping both metals over the past 2 weeks on every approach of $1780 and $35.
We are not out of the woods just as as tomorrow is the September BLS non-farms payroll report, which has historically been one of the cartel’s favorite times to initiate a substantial raid in the metals. Combine the timing of the BLS release with gold and silver’s potential break-out through clear resistance levels, and we will be shocked if the cartel does not attempt to initiate a major take down over the next 24 hours.
*Update: Well, that didn’t take long as Blythe and her monkeys immediately sprang into action, smashing silver back under $35 and gold back towards $1780