The Gold Cartel got stuffed. Gold and silver began to climb back and made new high after new high as the day wore on … even into the closing bell. And this occurred as the dollar gained strength during the day. The euro began to get trashed as the US stock market went into the tank, which has become a common occurrence of late. It almost seems that The Gold Cartel is gradually losing control of their gold rig, the Orwellians have gone to propping up the dollar when horrendous US economic news hits the tape. I’m not the only one noticing the action…

Bill-
It's unreal how on the daily trading charts, lately, as soon as gold starts to make a strong move, the euro gets SMASHED. It's like they have run out of ammo and manipulating the fx market is the only way to try to keep gold under wraps. This daily struggle is wild. Gold just really seems to WANT to go up. There seem to be big buyers under the market. That's why these guys like Mark Hulbert etc with all their proprietary 'models' etc just don't get it. If gold is being sought as an alternative CURRENCY, then all bets are off as far as technicals, contrariness, overbought ratios and on and on. People around the world are ....TERRIFIED about their finances and the possibility of social disintegration. Thus a rush to gold. As much as western governments have tried to kill gold as an investment asset class, people still go to it when they are afraid.

…….

Gold and silver have been really trading on their own of late, which is just what MIDAS has been saying would occur for as long as I can remember. The key to the gold/silver markets is physical market buying overpowering the cabal’s ability to feed available central bank supply to meet growing demand … not what the dollar does.

What we are seeing now is very exciting in that the biggest money in the world is coming our way. They now realize (finally) what kind of financial/economic market catastrophe is staring everyone in the face … and they know desperate governments, especially the US, are going to debase their currencies … so the GO TO investments are, and will be, gold and silver. We are close to spectacular fireworks price action-wise.

The technicals go super positive … February gold put in an outside day key reversal to the upside…

http://futures.tradingcharts.com/cha...

So did March silver, whose massive base chart formation and breakout is stunningly bullish …

http://futures.tradingcharts.com/cha...

For both gold and silver to reverse like this after the run they have put in of late, and do so in the face of a falling market and surging dollar, tells us to look for much higher prices in the near future.

And there is one other plus to throw into the mix. The yield on the 10 yr note rose sharply to 2.85%, as investors realize the quid pro quo for all the bailout money will be much higher interest rates down the road … higher interest rates due to inflation, which will further fuel demand for physical gold and silver.

…..JP Morgan Chase and HSBC are the two major shorts in the gold and silver markets … by significant margins. There is an ongoing CFTC investigation into the silver market because of the concentrated short positions. Should this investigation go anywhere, or should Morgan continue to have major silver problems, the market could blow up and the price of silver could go bonkers overnight.

….Hedge funds offer to price in gold

ByJames Mackintosh and Javier Blas

Published: January 29 2009 00:15 | Last updated: January 29 2009 00:15

A hedge fund has begun offering investors the chance to have their investment denominated in gold, as worries grow over governments debasing their currencies by printing money.

Osmium Capital Management, a $178m hedge fund manager based in Bermuda, is launching a new share class allowing investors to hold shares measured as troy ounces of the fund, rather than US dollars, sterling or euros.

The move follows a surge in investor demand for small gold bars and coins held by individuals and gold-backed exchange-traded funds that are holding a record amount of bullion.

….Gold likely to hit new highs on dlr fear-Barrick

DAVOS, Switzerland, Jan 29 (Reuters) - Gold is likely to hit new record highs, spurred by serious concern about the U.S. currency and doubt about the state of the world economy, the chairman of Barrick Gold Corp . said on Thursday.

…Lost in all the noise of the last few days has been a new record low for the DOW/Gold Ratio. The spike low of 9.05 last October was taken out as we can see from the chart below. As I write the ratio is at 9.26. Those who traded in their Dow shares at the peak in 2000 and bought Gold bullion can now reverse the trade (not that I recommend it) and buy five times as many Dow shares. All this before the GOLD RUSH!

….I am impresssed with the ease that gold has retaken $900 in spite of a strong dollar and a poor day in stocks. These correlations have been rare over the past 8 years. If we have indeed finally reached the point of separation between the stock market and gold, I believe we should quickly see a breathtaking jump in the precious metals, and perhaps an immediate new high in gold. We had a $40 up day last Friday and a $30 reversal today. The real signal should be a quick jump of at least $50 and an accompanying rise in the gold shares.

….There are many lagging juniors but some others have bounced over 3 times from their recent bottoms. My guess is that the tide is ready to move out and carry all boats. If so we should see some doubles and quadruples soon. In spite of the public and mainstream perception, the move in gold has not yet begun. Chu.

…Last fall I pounded the table that gold, /silver and the shares would be THE GO TO investment in 2009, not only for normal gold/silver share investors, but for most of Planet Wall Street. We getting closer and closer to that day. It is SO IMPORTANT to keep that in mind for those of us who own some horror show junior/exploration plays in the precious metals share sector. When that day comes, most all the gold/silver shares will go berserk. Our tiny market cap sector will not be able to accommodate the buying without sending those shares sky high.