Gold and Silver Approaching Critical Zones

A close and test as support of upper trading channel resistance will mark the onset of another plateau move (higher order function acceleration) for gold and silver. Upper channel resistance for gold and silver sit around $1,400 and 30, respectively.

Gold London PM Fixed:


Silver London PM Fixed:


The "normal" money flow footprint, shorting strength and buying weakness to control price, has short-circuited once again in 2010. Connected money is uncharacteristically buying rather than selling strength (to contain the advance). These flows, at first limited to the silver market, have spilled over into the gold market. These unusual money flows are illustrated in the follow charts:

Gold London P.M Fixed and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


Silver London P.M Fixed and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


Ignore the flapping lips and spoon-feed analysis. Observe the markets and follow the money.