After trading down overnight throughout the Asian and London sessions gold and silver have made another vertical move on the COMEX open, with silver popping from $27.50 back up through $28 to $28.05, and gold from $1593 to $1604.
Once again massive buying has come into the silver market at $27.50, which continues to provide massive support for silver on any dip.
While many many be discouraged with silver’s trading action as it’s range trade continues now 15 months into the current correction, the current base building consolidation will provide a strong base of support for silver’s next big bull rally.
Gold is now back above $1600 after being pushed back below the level overnight. A tight range is developing in gold as massive physical buying is emerging below $1600- essentially making gold act like a cork pushed under water at the $1600 level, while a hard cartel cap remains in place at $1620.
Expect the $1620 cap to continue, but we expect gold’s pent-up energy to soon burst the metal out of this consolidation zone back towards $1650. Once $1650 is cleared convincingly, it’s off to $1700, $1800, and new all-time nominal highs.