I hope that everyone had a happy Ramuhanukwanzmas. After being closed yesterday, the markets are back open today and...surprise, surprise...the precious metals are trading lower.
There is a pattern emerging here. It seems that the EE has taken a liking to hitting the gold and silver markets on the last evening of three-day weekends. I can't really say that it's something you can set your watch by in the future. However, I also can't say that I was surprised to see gold down almost $20 at one point overnight. Volume is already abysmal. Throw in a holiday weekend and you've got practically no one around to take the other side of a Cartel sell order. And down she goes.
Any other time and I would have expected 1600 to hold as support in gold. Unfortunately, the extra-light holiday trading volume allowed for the failure of 1600 and now gold is going to be pressed to get back above there. It needs to get back above that level soon, too, as it is being pressed lower by the trendline I've drawn. It needs to break higher so that 1585 doesn't fail. Below 1585, we'll likely get a test of the 12/15 lows. Silver looks similar. It needs to stay above 28.60 or so or it will drop toward the 12/15 lows near 28. Yuck. With the charts looking this way and with the anticipated light volume, I fear we are in for a no-fun week.
Just three items for your reading list today. First, another new piece from our buddy, Gonzalo. It's rather timely in that he discusses many of the things we've been covering here. Namely, that the MFing Global failure might continue to metastatize within the global banking system until it causes a complete failure of confidence and trust.
With all the doom-and-gloom disinformation out there, here's a little red meat for you:
Lastly, here's an oldie but a goodie. Just for fun.
Have a great day! TF