The problem was that the $US index did not break down initially....Gold was clearly the driver. I finally crashed to bed about 2:00 AM CST. There was a high at $US spot 1008 as silver reached $16.80. The $US finally cracked all the way to the 77.10, taking out the 2009 low just above. Then we had the support test of the $1000 breakout which held and now gold is back above $1005....This is sweet and sour...sweet as we are on the right side investment-wise, sour as it trumpet a nasty future socially and fiscally.
Over $100 billion in treasury auctions occur this week and this sort of rapid monetary erosion will become more gold bullish as the gold cartel retreats due to declining rounds of gold-to-sell ammo. Since more and more shorts are being piled on instead of a classic shortcovering, there exists real potential for a really fast $100 gold move in either direction. Silver has nothing in front but $20-22 if we hold above $16.25 this week....pic
