This is certainly setting up to be a wild and wooly week. Traders around the globe are back from "holiday" and realizing that things are seriously messed up. The latest symptom of which is this:
Now, the proper question to ask yourself is "why?". Why would the Swiss attach their currency to the dreadful and soon-to-be-meaningless euro? What do they know that we don't know? What are they afraid of? I suppose we'll have our answers in due time.
To no one's surprise, The Cartel used the Swissie headline as cover to initiate their usual 3:00 am raid. As you can see, gold was immediately bid back up.
Speaking of being bid back up, gold made new alltime highs before the raid, topping out at $1923.70. This gives us a rather interesting statistic:
1) Gold margins were hiked on 8/11 with the price at 1818. After a quick 5% correction, price had fully recovered one week later and was trading back above 1818 on 8/18.
2) Gold margins were hiked again the day after gold reached 1918 on 8/23. After a quick 10% correction, price has fully recovered nine days later.
Hmmm. I guess we know to buy the dip the next time gold margins are raised. Probably in another week or so or once gold trades through $2000.
For today, expect lots of volatility and wild swings, even on the 1-minute chart. Price may dip again into the targeted area shown below and I'll be waiting for it if it does. By the way, there is no double-top. That talk is all EE-inspired nonsense. Remember, the Forces of Darkness will always attempt to create selling by painting double-tops, reverse H&Ss, ORDs, etc. Do not fall for this foolishness. Gold is going higher.
Silver is once again caught up in the whole "is it a currency or is it a commodity" thing. Today, the world apparently thinks its a commodity as it is down about $1 in sympathy with stocks, crude and all of the other "risk off" trades. Whatever. BTFD. For today, if I get a chance to buy it under $42, I'll be all over it like stink on sht, like white on rice, like ugly on an ape, like...well, you get the picture.
That's all for now. Gotta go. More after the close. TF