Summer 2012 redux, giant buyer btfd in gold+silver today

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swissaustrian

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Rarely ever have I seen such a massive rally from intraday lows as today.

Gold spiked to a low of 1624.9 during London trading and is now 30+ $ (1657) or 2% higher
Silver made a spke low at 29.14 and is now trading one dollar + higher at 30.2 or 3,6% higher.

At the surface, this smells like short squeeze. However, the way the lows were made looks like a giant physical buyer stepped in during London trading. The lows were tested multiple times and somebody just picked everything each time. This is exactly what happened during last summer when gold just couldn't break below 1520 and silver couldn't fall below 26. Numerous market commentators said this was due to Asian central banks buying. The action today is looking very similar. :mrt: If that's true, we have another solid bottom at 29 and 1620. :popcorn:

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Another observation: Silver is about to close green today. Platinum is unch, palladium down 1% and gold down 0.3%. That's a very strong showing by silver :silver: During the last weeks, it looked like it could close below 30 two times. In both cases, somebody just rushed in and ramped it up above 30.
 
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Add to that that the miners had a late hour ramp job which is usually a good omen for the upcoming week:

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So far.. My mining account is up 5%, down 4.85% and up 4.30% in consecutive days. I need a drink.
 
It almost looks like there is a big fight going on between the pm bulls and bears.
I'm looking forward to next weeks COT report which will cover this weeks trading activity.
Today's report just covers Dec 24th-31st:

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There's nothing special in it as this was thin holiday trading with closed exchanges on the 25th, 26th, 28th and 29th. It basicly just covers two trading days: the 27th and the 31st of December. Notable however is the fact that the activity in silver points to mild short covering on behalf of the commercials whilest nothing comparable happened in gold.
 
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Silver is outperforming gold today on the downside which is pretty rare. It's holding 30 again so far.
 
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