Silver is on the train with gold

[pmbug]

So far today, both metals rallying together.

 

[DSAbug]

It's been a pretty good rally today and some of the resource names are finally starting to take notice.

The mining sector is still incredibly depressed (especially the juniors) but we did manage to confirm gold's move through pivot intraday but have since done some backing and filling.. We need to retake those levels for gold to have momentum and this not be another short term top. The fact they are doing this right in front of the Europe deal and on Option Expiration is a bit concerning.

Levels to watch on a closing basis.

GDX - 58
HUI - 555.95
XAU - 197.82
GDXJ - 31.59

 

[pmbug]

...
Much depends on the willingness of traders to see gold and silver as "SAFE HAVENS" and not as part of the broader risk trade. The reason the mining shares are doing so well in today's session, especially with the broad based selling across the general equity world, is that traders/investors have re-awakened to both gold and silver as safe havens in the midst of some very palpable fears about the shaky European debt crisis. As money flows have returned to those precious metals, flows are also coming into the mining shares which will of course benefit if the metals continue to move higher.

One day a trend does not make but this is such a drastic departure from recent behavior that it must be noted and also closely watched to see if this is the start of something significant.
...

http://traderdannorcini.blogspot.com/2011/10/hui-attempting-to-make-up-lost-ground.html

 

[pmbug]

Looks like the gains from yesterday and last night are holding so far.

 

[FCHorn]

Would like it to hit 50/ oz again to offload some coins...

 

[pmbug]

Have you seen the 24 hour trading chart for silver today? It looks like a graph produced by a lie detector. Crazy up and down range bound moves.

 

[pmbug]

PMs down this morning as doubts grow about the Euro solution (Greek referendum, German Supreme Court decision, remaining PIIGS lining up at the trough) and MF Global blows up. Likely also some pressure from unwinding trades related to the Japanese Yen intervention.

Looks to me like a sale on physical in the works.

 

[pmbug]

Reminder: On days like this, #gold declines not because folks hate gold but because they're desperate for cash. Smart money waits for bottom

http://twitter.com/#!/JamesGRickards/status/131366304195166208

I'm worried that we are beginning to see the eventual (true) disconnect between the paper and physical markets. As Euro (Greece) and derivative (MF Global) issues play out, there may be a lot of forced paper gold/silver selling to raise cash/liquidity as things blow up. As the gold/silver futures/spot tanks, physical metal is going to become harder and harder to find. Those looking for the optimal sale price to acquire physical might miss the boat if they aren't watching the physical market (dealer inventories, premiums, shipping delays, etc.).

 

[pmbug]

Both metals up through resistance today - $1,800 gold and $35 silver... will they hold?

 

[KMS]

That's still a 1:51.41 ratio.

Silver has room to move even if gold holds 1800.

 

[pmbug]

lol... looks like they didn't hold.