There are a lot of armchair techs calling for the death of PM's here because gold broke key supports. I say BS.
What they are ignoring or may be unaware of is that during this move of the PM's, gold's price didn't break higher pulling silver along. No, silver pulled gold up the entire way.
When you examine the gold chart, nothing on it's time chart screams bullish from a tech point of vie,w other than it was going up. If you look at silver however, the day and week charts specifically you see it as clear as day. The gamble seems to be if the PM's are going up go with the item that will give the biggest return, silver.
At the open I put back on the trade I had yesterday $21.83 to 21.88 long. I stop out $21.72.
My thesis is completely wrong if silver takes out $21.39. Maybe not as much wrong as the dynamics have changed.
BULLS looking for safety should get back long when or if it gets back above $22.849 on a closing day basis.
My runes say the high $23.xx's have to be revisited.
There is a little bit of SHORT TERM disagreement with your statement: “No, silver pulled gold up the entire way.”
If you look at the Gold/Silver ratio on Stock Charts it has been increasing since the end of August and the 50 day Moving Average (MA) is trending towards that of the 200 day MA. If they cross silver will lose a lot faster. Of course anything can happen with crooks manipulating the PM market.
We who believe that eventually PMs will have to show large gains in the near future also believe that it is a bad idea to not wait for a bottom before any commitment to jump in and buy. We are in a fight with a formidable enemy to the prosperity of massive numbers of people. Recent reports are that a small minority of very wealthy people in the financial industry have garnered historic gains in their personal wealth, while everyone else has lost. The Dow Jones Industrial Average has been redefined to include giants in the financial industry while removing those not part of it.
As others on this topic have noted, the big banks are driving the PM price levels, currently downward. As noted in another topic under the Hapiwondrer screen name, the big banks do not hold but a small fraction of the gold they report. It has been leased. The response to the Germans, and others, is that they are not getting theirs back for years. What better way to get it back than to drive price levels down so large numbers of small PM investors capitulate and sell. What better way for the rest to prevail than to state the truth so that most don’t capitulate to the big banks, many of which are driven by Rothschild interests.