One more day until The Turd is back "on the throne". I promise lots of pretty charts tomorrow. Until then, just this quick update.
You had to expect The Bernank to throw some cold water on the "QE3" excitement. He has doen exactly that and gold is now almost $10 off its highs of near 1595. Silver reached all the way to within 0.05 of the important 39.45 level before falling back. Now, what's next?
I can certainly understanding the profit-taking at those levels. Heck, if I'd been awake, I'd have done it, too. What we'll likely see now is a consolidation here with a little more pullback. Gold could fall back toward the old, intraday highs near 1580 and silver could drop toward 38. At that point, however, both would be very strong buys from a technical standpoint.
Gold, at this point, just looks fabulous. New all-time highs tend to make a chart look very nice. From here, I'd expect round number resistance at 1600 and maybe some pushback at Santa's old target of 1650. For silver, it's all about getting through and closing above the high of 39.45 set back on 5/11. Once it does that and then starts printing numbers that start with "4", you'll see lots and lots of money come pouring back into the pit. A very quick move back toward $48-50 is not only likely, it's probable.
The only thing that has me a little bit troubled is the lack of follow-through in copper and crude. Even with all this hubbub, copper was actually higher a week ago. Hmmm. And crude is down almost $2 today as The Regime is once again threatening SPR releases. What a bunch of douchebags.
Keep a very close eye on this situation. As if you needed more proof the QE to infinity is the only option:
And JS Kim has written another excellent article for ZH. If you're in the miners, please take time to read it:
Have a great day. I look forward to returning to full Turd duties tomorrow. TF