SD Midweek: Overnight Strength in Gold & Silver Has Cartel In BIG TROUBLE
Silver had strength to start the overnight session, and then again throughout the night:
This is pretty much where we would want silver to be. All things considered, the strong-arming of the markets looks to be waning. There is, after all, only so much hurricane. Hurricanes are regional events, and while the costs to rebuild will surely climb, it’s not like hurricanes offer the continued threat of Thermo-nuclear Armageddon, which seems to come front-and-center every few days now. And so silver is looking healthy here for several reasons:
We know that silver is going to have a little trouble at $18.25. Sure enough, the two day tap-and-bounce followed by a dip is very bullish. Everything is set up for the move to the upside. Higher-lows, not screaming “overbought”, and the need for silver to catch-up to gold are all signaling that it is silver in control of the price action and not the central banks. What the silver price really need to accomplish is a commanding break-out above $18.50. Until that happens, the three-way divide between the skeptics, the bears and the bulls will remain as wide as ever. Gold saw the same strength overnight as well:
Looking at the daily, we also see the healthy pullback in the yellow metal. There is also a bonus:
Gold has taken out 52-week highs, both intra-day, and on a closing basis! Gold is also near completion of a healthy pullback, and just like with silver, the cartel will have a hard time here if they are to further suppress price.
Palladium is consolidating between the $925 and $950 price range:
While palladium looks to be set for a dip down to the $925 price level, there could also be a commanding break-out from the sideways channel. The slow grind to the upside is clear, and sooner that consolidation is going to turn into action. The more price consolidates, the more explosive the move can be, and there is nothing bearish about that chart. In fact, it would not be a shocker if price explodes higher to catch up to the trend line. Yes copper has been struggling lately: