Our camp received a Christmas present a day late, and what a present it was. From Wednesday’s MIDAS…

"There was a stealth buyer out there accumulating gold soon after the Comex open, causing the price to make one new high after another as the day progressed."

The gold open interest rose 3,054 contracts to 290,765, which confirms that there was a stealth buyer out there buying up the market. That is a fair amount of open interest increase on a shortened day known for little trading.

Today we saw the same thing, a lower opening, followed later on by very steady buying, yet so quiet. Gold again made new small high, after new small high. Then, later in the Comex trading session, it took out $850, dipped below, and then went back above that key resistance point. Instead of backing off during a normally very quite trading day (no London trading as the English celebrate Boxing Day), gold then took out the highs it made recently above $850.

Somebody was clearly setting this market up for a price explosion when few people were around and paying attention. Gold proceeded further and took out some kind of trendline around the $855 level in the last 45 minutes and then SOARED to $870 and change VERY quickly (like minutes), as volume picked up dramatically. The trapped shorts were buried, as stops were touched off and panic buying ensued.

Now if silver could just catch that kind of action!