Gold Moves Sideways, Support at $1610
Silver Looks Tasty as it Stealthily Rises
On Tuesday, Comex gold futures prices had moved a bit higher in early trading. The market so far early in this week is still struggling to continue the gains made last Friday. The news remains relatively quiet, making for no market-moving developments in overnight trading or early this morning, although silver has moved steadily north, which we will detail later. Late Tuesday there is to be a Group of Seven teleconference regarding European Union debt, which comes before two key events on which traders early this week have their eyes: a European Central Bank officials meeting Wednesday and the U.S. Federal Reserve Chairman Ben Bernanke’s testimony before U.S. lawmakers on Thursday. Because Bernanke rarely mentions stimulus or QE when he talks, any hint thereof could mean a large uptick for gold and silver.
After having eaten up countries all across the southern hemisphere, the troika has set its eyes on Spain, as it now has enough capital to go after bigger fish than Iceland and Greece. The takedown of the entire European economy, one nation at a time, is a preview of a collapse of the Dollar so as to pull the rug out from beneath the U.S. citizens once their duty to the masters of the universe of standardizing the world through military operations is completed. Coming Soon! Anyway, the technicals in Spain will unfold in a manner similar to Greece, until the problems of the nation are “solved” politically by technocrats who put the nation further into debt until growth is impossible and Spain must go into receivership of internationalists. This will mean further safehaven demand for not gold, not silver, but (hold your breath!) the U.S. Dollar! The U.S. Dollar?
Silver today might be the big precious metals story however, as it is breaking trend and not moving sideways with gold, and instead has moved up steadily today twenty cents. At a certain point, the cartel cannot control the price of silver and it will indeed move north. They’d prefer this happen stealthily instead of with a huge breakout to the upside as if a repeat of April 2011.
The movement in yellow and white means a gold to silver ratio of 56.5 to 1, which is a tightening since our last look on Friday when the ratio stood at 57 to 1, moving away from the bearish target of this ratio of about 58.25 to 1.