from TF Metals Report:
Top o’the mornin’ to everyone in Turdland. As we get the week started, I thought it best to refresh the charts.
Let’s start with the metals. As discussed last week, gold was being actively penned below 1620. We finally moved through that level on Friday but, after tripping only a few stops up toward 1630, have since fallen back. The question now is: Can 1620 act as support and a springboard for our next move? The goal now is to finally break out of this 3.5-month range by getting above 1635-1640. From there, we’ll head off to fight the major battle at/near 1670.
Though gold has been able to get above 1620, silver has not been able to break its cap at 28.20. This is curious to me and suggestive of additional new shorting in order to contain price. I’ve often mentioned how odd it was that total Comex silver OI had ranged between 121,000 and 124,000 for nearly six weeks, from 6/28/12 to 8/3/12. The open interest finally broke out of this range on 8/3, just as silver rallied from near $27 to $27.80 and began pressing up against 28.20. Total OI as of last Thursday is now 125,491. To me this is simply adding fuel for the inevitable short squeeze.
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