Just a quick warning for early next week as I do not like the way things traded today.
Several things concern me for PM prices early next week.
- Gold and silver rose yesterday and broke through resistance on good volume and increased open interest.
- In light of today's action, this looks like a trap that was set by The Forces of Darkness.
- The PMs were pressured all day even though the POSX sold off all day and finished basically unchanged.
- Other "risk assets" such as stocks and copper traded higher all day
- Gold was then raided for $15 on the Friday afternoon Globex.
- Notice on the chart below that this raid occurred before a small Pig rally. Not during or after.
- After steps 1-6, does a Friday afternoon raid indicate that someone got word of a pending Cartel short-selling attack for Monday?
So, anyway, we'll see. DO NOT BE SURPRISED, though, if the metals take it in the shorts pretty good on Sunday night and Monday. IF they do, look for gold to drop to 1720 and potentially even 1705-1710. Silver will likely fall to 33 and even 32.80. At those points, both will present rather compelling buying opportunities.
At any rate, I hope I'm wrong and everything springs higher on Monday and all of next week. However, with both metals overdue for a little pullback and with the action we saw today, we should all be mentally prepared for some tough action early next week.