Finding Some Life?
Gold $424 Silver $6.68 Thursday 13 January, 11.45pm Sydney
G'day. It looks to me like we could be heading back through to $432 in Gold and that $6.92 looks attainable for silver in the short term. Oil is 15% off its low of a few weeks back. Metals are finding some life. The commodities casino looks like it is drawing in the punters again.
The physical gold market is very active and any dips in the gold price are being welcomed by eager physical buyers. This is providing key support around $420. The Open Interest numbers look pretty fair to me, as one looking for another $10 or $15 higher in the short term. There should be some pretty nervous shorts out there, I'd imagine.
Silver looks pretty good to me and our daily indicators are starting to look a lot better. Plenty of work to do to patch up the technical picture but the resilience of this metal should not be underestimated. People should not be lulled into any false bearish cocoon and a belief that double-digit silver was only a result of the Hunt Brothers. I expect it and sooner than most might expect (not advice).
The oil price was $9 a barrel in 1999 or thereabouts. It has gone up by 500%. Silver was $4.50 in 1999. It has gone up by about 50%. $15 silver doesn't sound so stupid does it?
How is it that gold goes up $4 or so in Comex session and my gold stocks go down a few percent? One day, I will work out why.
Gotta fly tonight... back later.
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