Tuesday was a momentous August day for Gold. After failing to close above $960 Monday, it blew through the ceiling Tuesday and closed above the $965 level. Its little sister Silver also shone brightly closing above $14.60. Wednesday saw a tiny pullback, but gold managed to stay above $962 and silver above $14.65.
What's going on here? Is this a fundamental move or a technical, short-term rally?
My guess is that the shakers and movers in the precious metals markets want to manipulate gold up to $1,000 or slightly higher before pulling the rug out from under those who chase this mini-bubble.
Analyst Ed Steer with Casey Research, like myself, is more excited about Silver than about Gold:Silver performed in virtual lock-step with gold during Comex trading...and has really been adding to its price gains in the last several days. And like I pointed out yesterday, gold was the loser in the precious metals family on Monday, and it was again yesterday...up only 1.17%...whereas silver was up 2.96%, platinum up 2.59% and palladium up 1.85%. But, as Ted Butler has mentioned in his last couple of essays [plus his new one today, linked further down]...all eyes should be on the silver price.
The gold stocks did not appreciate the aggressive selling that appeared in the closing minutes of Comex trading [and beyond] and sold off. The peak in the HUI came in the minute that gold and silver prices peaked. How do the owners of these shares seem to know that? Just asking. However, the silver equities were the standout for the second day running.
