Well, what an interesting day we have ahead of us. The markets are once again in "risk off" mode as the S&P and commodities are down while gold is up. We've also got this Merkel/Sarkozy luncheon date taking place. Don't stray too far from your computer today as the action will be significant.
Here are some updated charts for you. I've moved the scale to two hours so that we can see the pop and rise off of the downgrade reaction last weekend. Both metals are in a very interesting position this morning. Gold looks primed to challenge the 1800 level again but it first needs to close above 1775. Silver is once again driving everyone crazy. Is it a commodity (down) or is it money (up)? I know what you and I think but that doesn't really matter at this point. If silver is going to move higher in the short term, it must break through and close above $40 first. It then must break through and close above the 8/7 evening highs of 40.40.
A couple of other things. Lots and lots of ridiculous talk these days about gold being in a "bubble". I think I refuted that pretty well back on Sunday but here are a couple of other items for your consideration. First, a guy named Brent sent me this 10-minute presentation that he's crafted for his firm. I don't know who "Baker Ave Asset Mgmt" is and I certainly don't have any connection to them. However, this presentation is pretty well done and all they ask for is your first name when you sign up to play it. Pay particular attention to the final 4 minutes or so where Brent shows the value of gold versus the U.S. money supply. It's pretty compelling stuff.
Along the same lines, ZH posted this morning the latest missive from one of my favorite "analysts", Egon von Greyerz. This guy really gets it. He writes very well and, unlike the author of the article I posted yesterday, he does it in an easy-to-understand manner. I highly recommend you take the time to read this.
That's all for now. I've got lasts of 1780 and 39.65. Let's go get em! TF