A little positive wiff in the air?.. Not that you’d necessarily know from a daily perspective, but on an hourly basis Gold and silver have continued to inch higher in the last 2/3 days,.. Closing with higher lows and in the case of gold higher highs,..

I have a niff that silver’s scenting something too,.. Seems to a be a tad perkier this morning I feel,..
Best aye,..

Rich (Live from ‘The Scarborough Bullion Desk’)

Hi Bill
It's time to go up again.
$50 a leg approx for the last 2 rises.
Cheers Nick

Since we are into chartsville, here is another one … the monthly gold chart going back ten years, which shows the price going up the last nine years in a row…

Monthly gold chart

*Note the gradual rise until the end of 2005 into the first part of 2006. Gold spiked into May when the US Government "ordered" the price down, according to a US Senator from Washington.

*The price consolidated until the second half of 2007 when it exploded for a second time going into the early part of 2008. Once again The Gold Cartel took the price down, way down, going into the last part last year … completely erasing its spike move higher.

*This was part of another long consolidation process, with gold forming an extremely bullish reverse head and shoulders structure.

*Gold broke out to the upside from this powerful formation when it took out $1,000 and is now into another acceleration process, which should click into HIGH GEAR when the price breaches $1070.

Now for some superb input for you. Our STALKER source just called and sends us the following after a first time, in person meeting with the uncanny London trader in England…

*The London trader has picked up two new MAJOR American accounts – one is a wealthy individual and the other a large corporation.

*Both are accumulating large quantities of physical gold and are doing so overseas. The first batch was secured at $1034, with another significant batch to go. It was very difficult to secure.

*Physical gold is EXTREMELY hard to buy in SIZE. His sources are firms that have been in the gold business for 50 years. He believes it is going to get more difficult to secure supply in the weeks and months ahead.

*One day we are going to wake up and there will be NONE available.

*He is looking for the price of gold to go to $1150 to $1250 in 6 months, which seems very conservative to me considering the growing lack of physical supply.

*The US Government is going to hit the yen as a way of protecting US interest rates.

That’s really good stuff … especially so because it confirms the input Rob Kirby and Adrian Douglas have sent our way. This confirmation is just about coming from the horse’s mouth. It also helps to explain why The Gold Cartel raids keep failing.

More useful input just came in from a highly regarded bullion dealer, which also confirms why gold can’t get through $1070. There is a massive "digital option" (whatever that is), which expires next Wednesday. It so large the thinking is that it is a central bank. This why all rallies toward that price level continue to fail … FOR NOW.

The continual capping of the gold price is having its effect on some tech spec longs. The open interest dropped 10,134 contracts to 506,698 yesterday. The same with silver. Its OI sank 1674 contracts to 135,736.

The yield on the 10 yr T note is 3.48%.