The contrived top in gold and the central/bullion bank op to facilitate a waterfall in gold and silver has been summarily rejected by the market. Today’s big white candle has established a lower low for yesterday and the chart remains neutral with a higher high to go along with the swing low. Support is the 1820 level where the 18 day moving average lies as well as a swing low prior yesterday’s low. Resistance is the Bollinger band at 1906 followed by the all time high at 1923. Obama’s speech was nothing new and reeked of status quo Washington bullshit. I expect Asia will do what Asia does, buy gold. Tomorrow could see another play for 1923.
PHYS maintains its premium at 4.42% and again shows the market’s preference for real and allocated gold as opposed to the paper in GLD. Both gaps, one down and one up have filled. Support is at 16.10 with additional support at the 20 day moving average around 15.87. Resistance is the last swing high and the Bollinger band at 16.80.
Silver continued and added to the reversal and the hammer candle of yesterday. When silver blasts off it is going to have a good bit of stored potential energy behind it due to the congested base it has built. Support is 41.48 at the 18 day moving average with additional support lower at 40.38, the last swing low. Resistance is 43.50, the latest swing high. I continue to hold Jan 45 SLV call options expecting a move to 45 at a minimum.