07 November 2011

Gold Daily and Silver Weekly Charts

The metals ripped higher, with gold tearing through key resistance at 1780 and running up to 1800 into the close.

Now that the bulls have stuck a close here, they need to hold it and post a weekly close in the 1780+ area.

If they can do this then the next big trial will come with the December option expirations, barring fresh headline jitters.

As noted on the chart, the last big smackdown was an exceptional buying opportunity. For those 'waiting on the sidelines' if you did not take that low price, then you should stop kidding yourselves. You are out of the metals market, and have joined the ranks of bystanders.

That is not to say that the road for the metals going forward is smooth and straight up. It most certainly will not. Big changes are coming, and the outcomes are difficult to handicap to say the least.

But all things considered, I would rather be prepared for what is probably coming and hope for something better, than to place all our hopes solely in the hands of politicians who so far have shown themselves to be dishonorable, duplicitous, and even cruel.