Gold about $428 Silver about $8.10 April 1, 4am Sydney.
Only brief today, sorry Minyans. The price action in gold and silver has had me a little busy today for some reason.
Gold closed in NY at a new high for the last decade and a half but Japan decided to knock a few bucks off and we saw very solid support at the mid $424 level. London opened up and continued to press higher before Comex opened and gold flew out of the blocks trading as high as $433 value the June Futures contract. Gold got crushed back to $426 (June Futes) within a half hour. Spectacular if you are watching but pretty nasty if you are playing.
So what happened. Funds ran it up initially triggering some stoppies on the way up. Trade selling stopped it and it appears the funds put the phones down and, in less than heavy volume, the stuffing was knocked out of it. 100 lots were moving the market 60cents lower at a time and basically there was little follow through buying to support. This lack of depth, gave some bears a great opening to stick the knife in and they didn't miss.
Now we're back in the right zip code again with June Futures back around $430.
Silver was just plain crazy. There was a range of over 60c in silver today from low to high $7.88 to $8.19 then back down to $7.98 and finally back up to $8.12 where we are now. Now that's what I call some volatility. There isn't much to add except that someone must be hurting pretty bad. Again we don't want to get cocky at all, as these markets will bite your backside as soon as you think you've got their measure. The charts are all looking good with plenty of blue sky but that doesn't mean we'll go straight up, let alone up at all. Be very careful in this market.
Equities are lethargic at best. Pan American Silver (PAAS:NYSE) and Silver Standard Resources (SSRI:NYSE) are the standouts today. Coeur d'Alene (CDE:NYSE) disappoints me as they have great leverage to rising silver prices in my opinion, but obviously the market isn't in agreement or the market doesn't see this rally as being sustainable. Oh well, we will see.
HUI up about 5 points and at Comex close it's right near its high for the day. Will the late arvo selloffs that we have seen lately come again today?
Gotta fly sorry last 10 mins could be wild on the Comex.
Enjoy the rest of the day.
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