Silver, Gold Down on London Bank Holiday
Surprisingly, silver and gold have been rather quiet this morning, particularly in the face of the escalating European debt crisis, and the London market closed Mon & Tues for a bank holiday (Next London fix is Wed AM).
In conditions that are classically used by the cartel to raid both metals, both are down only slightly, with silver trading as low as $28.17 (rather amazing that trading down 2% is considered quiet trading in silver during an illiquid trading day!) but is now back near $28.50.
Silver needs to hold support near $28- expect the cartel to make several efforts to push silver back below $28 and gold below $1600 over the next two trading days (with London closed).
Gold traded as low as $1614 this morning, and it will be critical for gold to hold $1600 through today and tomorrow’s close.
If gold can manage to pull consecutive $1600+ closes off the next two days, the worst of the correction will likely be behind us.