The gold & silver rally we predicted last Friday continues tonight as both metals are climbing again as Asia opens, with silver bursting above $22, and gold up over $30 off yesterday’s lows and closing in on $1350.
As it becomes increasingly obvious that the metals have bottomed at $1179 and $18, big money that has been sitting on the sidelines throughout the summer entering the market en-mass could easily ignite a short covering rally of epic proportions.
After climbing above $22 shortly after the Asian open, silver is now consolidating around the level. We expect $22.50 to be tested before the end of the week. Look for the cartel to put up a major fight (don’t be surprised to see several Fed goons trotted out to threaten QE taper in September) at $22.50 as a move through $22.50 could quickly result in a gap-up towards more significant resistance near $24.50-$25.
Gold’s rally also continues tonight as it prepares its assault on $1350: