The Gold Cartel has thrown everything they have at gold and silver this week in order to take both precious metals markets down around key financial market news and option expirations. They created a horrendous technical situation for both precious metals and in the past gold and silver would eventually have fallen apart. But as mentioned here, their efforts would be meaningless in these rigged markets IF the physical markets held up … because the move lower was forced and not fundamentally based. The odds were (are) pretty favorable that they would both hold up THIS TIME because both markets are in such good shape from a fundamental point of view. Demand for both continues to surge, even as physical supply continues to dwindle. The Gold Cartel needs ammunition to win their day and that ammo is getting harder and harder to come by.

Gold corrected this morning to $1227.50 and then made a U-turn to the upside. Silver was even more impressive, as it dropped to $18.18 and then rocketed back up, despite a very weak US stock market, which would have sealed the deal for The Gold Cartel in the past. Once again the silver price managers buried the price going into the July option expiration at the close of Comex today, but the physical market is in such good shape, they had to give up their ghost due to surging buying pressure. This is a rare event and suggests that silver is gearing up for a price explosion in the near term.