Gold and silver rallied throughout the Asian and London overnight sessions in the wake of Wednesday evening’s downgrade of Spain by S&P.
Gold had risen almost exactly back to $1775 which the cartel has capped for nearly 3 weeks now, and silver had run to $34.44.
What happened next won’t surprise any of our readers, as both metals were once again smashed on the COMEX open.
Silver had a mini-parabolic rally: classic pre-raid action as the cartel attempts to suck in fresh longs just prior to the attack:
Gold also had a vertical move just prior to the COMEX open raid:
Once again the cartel digs in their heels at $1775 and $34.50. Unfortunately for them, after 3 weeks of capping and raids, both metals refuse to break down below $1750 and $33.50. Look for possibly one final attempt at a major smash to induce longs to liquidate, but the strong physical buying in London of both metals makes a move through the cartel caps of $1775 and $34.50 inevitable- it’s just a matter of time.