I hope I am wrong, but it appears gold is going to be put in a vice for a little while as the US prosecutes the war. All we can do is to be vigilante and look for signs that The Gold Cartel is losing control of their manipulation scheme. That could come at any time. Word is Alan Greenspan has been to The White House three times the past 48 hours Something�s up! Maybe he is concerned about serious cabal problems already, now that it looks like the war will be longer and more expensive than calculated by many.
A first step for gold to start looking healthy would be to close above $332.50. However, it must take out the $347 area to nullify its top formation and must clear $360 to put the bull market back in roaring gear.
The gold open interest continues to drop. It sank another 3368 contracts Friday to 184,733 contracts. All the fluff established since gold�s $330 breakout has been squeezed out of the market. That is a big positive.
The floor is turning very bullish on silver again. The open interest is 184,733 contracts, rising 3368 contracts on Friday alone. The floor believes a good number of spec funds have entered the fray on the short side and are becoming very vulnerable to a flush out on the upside.