Gold Daily and Silver Weekly Charts - Somebody Throw Some Water on Blythe, She's Smokin!

Wow.

Silver is amazing. Its upward moves are iconic, a short squeeze that doesn't know when to quit. And the equity markets are no slouches either. Is that you blowing a bubble again Benny?

The miners are lagging and at some point soon they should catch up, especially the juniors. I think a lot of people do not believe the metals move is for real and so are playing paired trades and some assets become individually mispriced.

I feel like we are in the Jurassic Park movie, seeing the water glasses on the dashboard shaking, with the heavy footfalls of T-Rex and the sounds of its breathing moving around us in the night. We just do not know which direction it is coming from, and where it is going.

I took some paired positions into the weekend, I just could not resist. I have a weak spot for long holiday weekends in which Asia is open and the west is closed. Let's see if any of the China rumours with regard to the reminbi are valid.

Have a happy holiday weekend everyone, and see you at the late show Sunday night.

Metal's breaking out. Timmy's at the wheel, with Jamie and Blythe in the back seat. Ben is the goat.

Showdown in the Metals Markets: Let's Get Ready to Rumble

Silver is likely to lead the way higher from here, with gold following.

The suppression of the metals by the central banks since 1971 will not fall apart in a moment. But if there is a time to which people will later point and say, 'this was the turning point,' it is likely to be in the intital breakout of silver above twenty and of gold from its big cup and handle formation. To borrow an analogy from wartime, this was their Stalingrad, prelude to Kursk.

And the final turn and the beginning of the long retreat of the Central Bankers may lie ahead on the horizon. And what comes next, no one can say for certain, when the mighty are fallen.

“So farewell, farewell to the little good you bear me.
Farewell! a long farewell, to all my greatness!
This is the state of man: to-day he puts forth
The tender leaves of hopes; to-morrow blossoms,
And bears his blushing honours thick upon him;
The third day comes a frost, a killing frost,
And, when he thinks, good easy man, full surely
His greatness is a-ripening, nips his root,
And then he falls, as I do..."

Wm. Shakespeare, Henry the Eighth, Wolsey, Act 3 Sc 2

Gold and Silver, SP 500 and NDX December Futures Daily Charts

Gold met the intermediate measuring objective of 1375 today.  The slope of this rally is a bit strenuous and a consolidation of some sort, even a bit of a retracement, would not be out of order and might even be welcome for traders to catch their breath and square up positions. However, gold may not oblige as this breakout is particularly violent having built such a long and broad handle in its base formation. This bull market has a long way to go.

Silver is taking out $24 oz. in what is an extraordinary rally following JPM's closing of Blythe Master's proprietary trading group.

Gold and Silver, and SP 500 and NDX December Futures Daily Charts

"As a dog returns to its vomit, so the Fed returns to its folly." Prov 26:11

Financial Times
Fed tilts to more monetary easing
By James Politi in Washington and Robin Harding in St Louis
October 12 2010 19:15

The likelihood that the US will soon launch a fresh burst of “quantitative easing” has increased, as minutes from the Federal Reserve’s latest meeting revealed that officials were nearing an agreement on the need for additional monetary stimulus. The official record from the September 21 gathering of the federal open market committee, which sets interest rates, showed that “many” officials thought a new round of monetary easing might be necessary to breathe life into the sluggish US recovery...

Gold and Silver Daily Charts

Gold and Silver Charts; US Dollar

Gold Daily

Gold has firmly and clearly broken out of the cup and handle formation which is now active. There is a possibility that it will retrace to the point of breakout which should now be considered support. Targets for the formation are as indicated.



Silver Daily

Silver has reached the minimum measuring objective of its breakout from the symmetrical triangle which is a continuation pattern in the powerful bull market. A consolidation would be typical, considering the short term overbought condition. However, silver is not a 'typical commodity' but a key metal that has been subject to years of suppression by a few powerful trading banks. So be on your guard and expect the unexpected.




Silver Weekly




US Dollar Daily

I have support at 79.50, and this is where the dollar tested today in its downside slide. The DX Index is deeply flawed, being weighted heavily to the yen and euro, with no weight to the developing country currencies or gold and silver. But it is the most widely watched index until something better comes along.




US Dollar Weekly




US Dollar Ready to Plummet - James Turk

Gold and Silver Daily Charts - U Can't Touch This

Gold



Silver



This goes out to Bythe Masters and the Commodity Trading Group at JPM
from grateful metals bulls everywhere. Good Luck on Dancing with the Stars tonight.

Sound the bell. School's in, suckas.

Gold and Silver Daily Chart

Gold



Silver

As T. E. Lawrence said after the massacre at Tafas in 1918, 'No Prisoners.'

This is what happens when the stranglehold of manipulation is relaxed on a market with tight supply and steady demand.

Target is 21.80, but watch out for pullbacks especially if there is a large selloff in stocks as we suspect there will be in the latter part of September. A pullback to 19.50 to retest that big resistance would not invalidate the chart formation.

Gold and Silver Daily Charts

Gold

Gold Gains As Central Banks Stock Up - Financial Times

The Curse of Fiat Money - Thorsten Polleit



Silver

Gold and Silver Daily Charts

Gold



Silver

Gold and Silver Charts

Gold Daily Chart



Gold Weekly Chart



Silver Daily Chart

Gold and Silver Charts

New futures were issued to holders of call options that were in the money today.

Let's see if the wiseguys try to run the stops tomorrow.

The second estimate of US Q2 GDP will be released tomorrow, with the consensus at 1.4% down from the original 2.4%. Keep an eye on the GDP deflator which is expected to remain steady at 1.8%. The deflator is the broadest measure of price inflation since encompassing all goods and services rather than a basket.

Gold Daily



Gold Weekly



Silver Daily



Silver Weekly

Gold Daily Chart; Silver Daily Chart; US Dollar Daily Chart

Gold Daily Chart

The cup and handle formation held intact, but the toughest part of overhead resistance is dead ahead, all the way up to 1212.



Silver Daily Chart

Silver looks to be on the verge of a breakout to the upside to test 19.20.



US Dollar Daily Chart

The dollar sliced through support like it was not even there. A test of 80 area support is in the card, and the dollar is getting short term oversold.