“Where we are at on the charts with regards to the precious metals is that they are blowing through resistance levels like they are not even there. If we can clear $23 on silver, there isn’t much resistance until $25 and if silver plows through $25, then you have a realistic possibility of it running up to $35.”
Because we are at new highs in nominal terms on gold, we can’t go back and reference charts so we are projecting levels. The next technical resistance is at $1,380 with light selling possible at $1,350.
The primary drivers in gold and silver today had to do with concerns over currency devaluation as well as securitized debt problems and the implications associated with it. Here is what Jim Sinclair had to say:
Jim Sinclair: “Each time that happens an item of collateral on the securitized debt publicly dies. That is why this is dynamite that people will realize very soon. This is one reason gold is up hard today.”
“That collateralized debt obligation is now effectively worthless because the collateral behind the debt can no longer be collected. The banks cannot go and get it.