The Gold & Silver markets continue to take giant leaps forward as the calendar heats up early September. After 3 consecutive weeks of solid performance to the upside, Gold rests just shy of $1700 while Silver marks time near $32.25.
Major short covering and new momentum buying before/during/and after the Jackson Hole Symposium has been fueling their moves higher. As elated as the Bulls are, there is danger on the edge of town.(The End, The Doors) Look out for Weird Scenes Inside The Gold Mine.
A potentially massive macro event risk loom large in the form of “Super Mario’s” ECB Decision tomorrow and next week’s FOMC Meeting. The current paths of least resistance for these Heavy Metals. Hard Currencies are up but face enormous near-term obstacles should either meeting disappoint/fail to satisfy. We could very well be in an environment where these event risks could trigger enormous moves in either direction. Be prepared.
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