In what should come as a surprise to no one, the PMs are lower this morning due to a slowly rising POSX. Let's watch today to see if the hard won resistance level from last week can become support this week.
Specifically, we'll be looking for gold to first hold 1720, which I see that it has already done once today. If the selling pressure becomes significant today and tomorrow, gold could fall all the way back toward rather stout support at 1705. Silver will first see support near 33 but, really, the entire area from 32.80 to 33 should serve as a solid floor for price. That said, DO NOT be surprised if a drop develops that takes silver down through 32.80. As we've been documenting here, the total OI and volume is so light in silver these days that we must expect extreme volatility, to the UPside and downside. I remind you of this simply to provide a warning so that no one gets all freaked out if silver is back to $32 by tomorrow. Frankly, I hope it is as I might have to re-invest a little "house money" if it were to pullback that far, that fast.
Below are your weekly charts. It's quite clear where the PMs are headed. HIGHER! However, while the Forces of Darkness have acquiesced somewhat this month, I expect them to begin reverting back to their customary roles as the metals mover higher from here. Gold will encounter significant resistance near 1750. Do you recall November and all of the trouble The Cartel gave it there? http://www.tfmetalsreport.com/blog/2945/amended-silver-support-levels $35.50 and then $33 were pretty significant numbers in silver back then, too. Once these 2012 rallies re-commence, look for silver to head to 35.50. It will likely encounter some rather stout, EE resistance there. If/when it bests that level, The Battle Royale will be at the down-sloping trendline that connects the highs of April and September. Gold will see The Cartel place barricades at 1750. Once it breaks through there, The Jackals will fall back and attempt to defend 1800. You can be assured that The Evil Ones will put up a significant fight at that level because, beyond there, there is nothing to stop gold from returning to its old highs of 1900+.
That's all for now. I will have more for you this afternoon, once I see the OI numbers from Friday. TF